Fitch cuts Huadian Power view to negative

Fitch Ratings said it affirmed Huadian Power International Corp. Ltd.'s long-term foreign- and local-currency issuer default ratings at BBB- and its short-term foreign- and local-currency issuer default ratings at F3. The outlook is revised to negative from stable.

The company suffers from the highest unit fuel costs and lowest average utilization hours among Fitch-rated Chinese independent power producers, the agency said.

The ratings also take into account its position as one of the leading producers, large-scale generating assets and sustainable power demand growth in China, Fitch said.

Fitch said it is concerned with the delay in the issuance of RMB5.3 billion six-year bonds with warrants to finance the company's greenfield projects, asset injection from its parent and the refinancing of borrowings.

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