Fitch affirms Huaneng

Fitch Ratings said it affirmed Huaneng Power International Ltd.'s long-term foreign- and local-currency issuer default ratings at BB+, senior ratings at BB+ and short-term foreign- and local-currency issuer default ratings at B.

The outlook is stable.

The agency said the affirmation reflects the relatively strong position of Huaneng and the parent China Huaneng Group in the face of continued disparity between high coal prices and artificially low electricity tariffs. Huaneng retains slightly higher interest coverage and a better leverage profile compared with its peers in China, Fitch said.

Huaneng remains exposed to financial deterioration due to a weak thermal power industry and lack of a transparent pass-through mechanism for rising coal prices, Fitch said, and the agency continues to expect Huaneng's total adjusted debt-to-operating EBITDAR ratio to remain above 7 times in the medium term.

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