S&P downgrades CLP Power

Standard & Poor's said it lowered the long-term corporate credit rating on CLP Power Hong Kong Ltd. to A from A+ and affirmed the A-1 short-term corporate credit rating.

The agency also lowered the long-term corporate credit rating on its parent CLP Holdings Ltd. to A- from A and the short-term corporate credit rating to A-2 from A-1.

The outlook on the long-term ratings is stable. Ratings were removed the ratings from CreditWatch, where they were placed with negative implications on Jan. 9.

The downgrade reflects an expectation that the company's financial profile will weaken from 2009, according to the agency.

Ratings are supported by a strong business profile, de facto market monopoly and solid operating performance, S&P said.

CLP Holdings' rating is supported by CLP Power's strong and predictable cash flow generation, increasing geographic diversification in overseas investments and management's demonstrated investment discipline, the agency noted.

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