Fitch: positive move for CLP

Fitch Ratings said it said CLP Holdings Ltd.'s intention to invest in the Yangjiang Nuclear Power project is positive for its long-term carbon emission reduction strategy. The company has A+ ratings and a negative outlook.

Its decision is consistent with its strategy to increase non-carbon-emitting generating capacity to 20% by 2020 from 15% at the end of 2009, Fitch said.

Furthermore, this investment is not expected to materially increase CLP's funds-from-operations adjusted net leverage over the projected period, the agency said.

The outlook reflects a view that CLP does not have much headroom in its ratings, Fitch said, and potential new investments may lead to deterioration in the company's financial or business profile, which would warrant a downgrade.

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