Fitch ups SPI Australia Holdings

Fitch Ratings said it upgraded it long-term ratings for SPI Australia Holdings LP and its subsidiary SPI Electricity Pty Ltd. to A from BBB+ and removed them from Rating Watch positive.

This action follows the completion of the sale of SPI Australia's merchant energy assets to Hong King's CLP Holdings (A+/F1), the agency said.

At the same time, Fitch said it assigned a long-term rating of A to SPI Electricity & Gas Australia Holdings Pty Ltd.

The outlook is stable.

The rating upgrade reflects improvement in the company's business risk profile, the agency said. However, uncertainty over the forthcoming electricity distribution determination and the likelihood that SPI Australia could be required to increase capital expenditure to improve its operational network performance create an ongoing credit rating concern, Fitch added.

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