Standard & Poor's (S&P) has affirmed CLP Power's A-plus local currency corporate credit rating and its A foreign currency corporate credit rating.
However, the United States rating agency said the outlook on both ratings was negative.
'The ratings on CLP Power reflect its strong financial performance and its above-average business profile . . . characterised by a favourable regulatory environment,' S&P said.
It added that 'a de facto monopoly in electricity supply and distribution in its service area and solid operations, with diversified customer and fuel mixes' also contributed to CLP Power's strengths.
However, 'these strengths are offset to some extent by high reserve margins with foreign currency exposure in its debt profile', S&P added.
CLP Power - supplying about 70 per cent of domestic energy needs - has an exclusive franchise to distribute electricity in Kowloon and the New Territories with tariffs governed by a Scheme of Control Agreement (SCA). The company is a wholly owned subsidiary of CLP Holdings, which also has interests in power projects in the mainland.
