Fitch ups CLP view to stable

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

Fitch said it revised the outlook to stable from negative.

This action is driven by the Hong Kong government's new agreement framework to start Oct. 1, 2008, which lifted the regulatory uncertainty surrounding CLP and CLP Power, Fitch said.

The outlook revision reflects the fact that the agreement framework is more beneficial to the company than Fitch said it had previously anticipated.

Although Fitch said it expects CLP's profitability and credit metrics to decline under the new agreement framework, the agency now expects the group's financial and business risk profile to remain consistent with an A+ rating.

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