Fitch affirms CLP

Fitch Ratings said it affirmed CLP Holdings Ltd.'s and CLP Power Hong Kong Ltd.'s long-term foreign-currency and local-currency issuer default ratings at A+, as well as the foreign-currency short-term ratings at F1.

Fitch said it revised the outlook on the ratings to negative from stable to reflect the regulatory uncertainty. The ratings reflect CLP's control of its 100% subsidiary CLP Power, which has a virtual monopoly of power supplies in Kowloon and New territories in Hong Kong.

The credit metrics of both CLP and CLP Power should remain sound under the recommended permitted rate of return, Fitch said. However, regulatory uncertainty will remain until the Hong Kong government makes a final decision on new regulations, the agency added.

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