Moody's rates HKCG notes A1

Moody's Investors Service said it assigned an A1 rating to HKCG (Finance) Ltd.'s RMB1 billion fixed-rate drawdown under its $1 billion medium-term note program, which is guaranteed by the Hong Kong and China Gas Co.

The outlook is stable.

The ratings reflect HKCG's long operating track record as the first public utility company in Hong Kong, Moody's said, and a track record of passing on rising costs through tariff adjustments.

Although HKCG's investments in China offer growth potential, they come with higher business risks, the agency said.

The stable outlook reflects an expectation that HKCG will pursue its prudent approach towards its growth strategies in China, while maintaining its business franchise and tariff adjustment mechanism in the Hong Kong domestic gas market, Moody's said.

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