S&P puts China Resources Power on positive watch

Standard & Poor's said it placed its BBB long-term corporate credit rating and cnA Greater China regional scale rating on China Resources Power Holdings Co. Ltd. (CR Power) on CreditWatch with positive implications.

S&P also placed the ratings on all outstanding senior unsecured notes and subordinated notes that the company issued or guaranteed on CreditWatch with positive implications.

The CreditWatch action follows CR Power's announcement on May 10 that it was offering to merge with China Resources Gas Group Ltd. (CR Gas), one of the major city-gas distributors in China, through an exchange of shares. Both companies are majority owned by China Resources (Holdings) Co. Ltd., a conglomerate wholly owned by the Chinese government.

"The CreditWatch action reflects the potential benefits of a stronger market position, better diversification, and enhanced status of the proposed merged company in the wider CR Holdings group," said S&P credit analyst Gloria Lu in a news release.

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