Moody's confirms CLP Power

Moody's Investors Service said it confirmed CLP Power Hong Kong Ltd.'s A1 issuer and prime-1 short-term ratings, along with its A2 issuer and prime-1 short-term ratings on CLP Holdings Ltd.

The agency also said it confirmed the A1 senior unsecured debt and prime-1 short-term rating on CLP Power Hong Kong Financing Ltd.

The outlook is stable.

This concludes a review that began in December 2010 when subsidiary TRUenergy announced its $2.05 billion purchase of EnergyAustralia's retail business the Delta Western GenTrader bundle as well as two development sites for power stations in the New South Wales, Moody's said.

The confirmation reflects an expectation that the New South Wales acquisition will have no material impact on CLP's business or financial profiles, the agency said.

The acquisition provides strategic benefits to TRUenergy and is immediately earnings-accretive, Moody's added.

And the acquisition of Delta Western's generation capacity provides TRUenergy with a long-term supply of electricity to match growing demand and to maintain a balanced hedging profile, the agency said.

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