Fitch cuts Huadian Power to BB

Fitch Ratings said it has downgraded Huadian Power International Corp. Ltd.'s long-term foreign-and local-currency issuer default ratings to BB from BBB-, its short-term foreign- and local-currency issuer default rating to B from F3.

The outlook is revised to stable from negative.

The downgrades reflect a reassessment of the company's linkages with controlling shareholder China Huadian Corp., Fitch said.

The parent company's consolidated credit profile is weaker than Huandian Power's stand-alone BB+ rating by two notches and given the lack of ring fencing it receives from its parent, the company is constrained at BB-, the agency said.

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