Moody's: stable view for Asian utilities

Moody's Investors Service said it changed its outlook for the Asian power utilities sector, excluding Japan, to stable from negative for the next 12 to 18 months.

debt-funded acquisitions, which pose a certain level of risk, are likely to decline in light of the economic downturn, Moody's said. This development provides support, as many acquisitions are highly capital intensive and some remain in their early stages with regard to overall cash flow generation, the agency said.

Moody's said it rates 17 utilities in the region with ratings ranging from Aa3 to Ba3, while the outlooks are either stable or positive.

Other reasons for the change in the industry outlook - as distinct from the outlook - to stable include the decline and stabilization in fuel costs against the backdrop of ad-hoc tariff adjustments, the agency said.

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