Moody’s: China Resources unaffected

Moody's Investors Service said that China Resources Power Holdings Co., Ltd.'s announcement that it will sell stakes in various coal mining companies is credit positive but will have no immediate impact on the company's Baa2 issuer rating or stable outlook.

"The transactions are credit positive for CR Power because they will reduce its overall business risk, given the higher risk inherent in the coal mining segment because of its cyclicality and volatility, compared to the company's core regulated power generation segment," Ralph Ng, Moody's assistant vice president and analyst, said in a news release.

"The company will also benefit from the disposals because the proceeds from the transactions, including the proceeds from the repayment of the shareholder loans, will improve its liquidity and offer an opportunity to reduce debt."

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