S&P: Hong Kong And China Gas to stable

Standard & Poor's said it revised the outlook on Hong Kong And China Gas Co. Ltd. to stable from negative.

At the same time, the agency affirmed the A+ long-term corporate credit rating on Hong Kong And China Gas, A+ long-term issue rating on the company's outstanding senior unsecured notes and the A- long-term issue rating on its perpetual subordinated capital securities.

S&P also affirmed the cnAAA long-term Greater China regional scale ratings on the company and the notes, and the cnAA long-term Greater China regional scale ratings on its perpetual subordinated capital securities.

S&P said it revised the outlook because it believes Hong Kong And China Gas’ increased discipline in managing its leverage and growing operating cash flow will continue to improve its financial strength over the next two years.

This compensates for the company's increasing exposure to China and the potential volatility in its "new energy" business. The agency expects Hong Kong And China Gas to continue to expand its city gas business in China, mainly through organic growth, and adopt a measured approach in developing the new energy business.

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