S&P lifts Huaneng Power

Standard & Poor's said it raised the long-term corporate credit rating on Huaneng Power International Inc. to BBB+ from BBB.

The outlook is stable.

According to S&P, the upgrade reflects the smooth execution of Huaneng's new electricity power plants.

The upgrade also factors in Huaneng's strong liquidity position, the well-diversified location of the company's assets, China's continued growing demand for power and the country's supportive regulatory environment, the agency said.

These strengths are partly offset by potential margin squeeze due to the company's exposure to volatile fuel costs and its inability to fully pass through these cost increases to power tariffs, S&P said.

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