S&P affirms CLP Power

Standard & Poor's said it affirmed the A- long-term and A-2 short-term corporate credit ratings on CLP Holdings Ltd., along with the A long-term and A-1 short-term corporate credit ratings on CLP Power Hong Kong Ltd., the vertically integrated utility subsidiary of CLP Holdings.

The agency said it also affirmed the A ratings on all the issues and the medium-term notes program of CLP Power Hong Kong Financing. CLP Power guarantees the notes.

All of the ratings were removed from CreditWatch, where they were placed with negative implications in December.

The outlook is stable.

The affirmations follow the completion of CLP Holdings' purchase of certain energy assets in New South Wales, Australia, S&P said.

The company's management is strongly committed to deleveraging the balance sheet by 2012, the agency said. The company's financial risk profile remains modest.

But, the Australian acquisitions will weaken the group's financial health in 2011 due to the increased debts, S&P added.

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