S&P affirms Hong Kong energy firms

Standard & Poor's said it affirmed the corporate credit ratings of Cheung Kong Infrastructure Holdings Ltd. at A-, CitiPower Trust at A-, ETSA Utilities Finance Pty Ltd. at A-, Hongkong Electric Co. Ltd. at A+., Hongkong Electric Holdings Ltd. at A+, Hutchison Ports (U.K.) Ltd. at A-, Hutchison Whampoa Ltd. at A- and Powercor Australia, LLC at A-.

Each company has a stable outlook.

The affirmations follow news that a consortium comprising of the companies has completed the acquisition of 100% of the U.K. regulated and non-regulated network activities of EDF Energy plc for £5.775 billion from Electricite de France SA.

The acquisition is in line with the stated business strategy of Cheung Kong and Hongkong Electric to invest in regulated utilities in developed economies, S&P said.

The acquired electricity distribution networks have excellent business risk profiles due to a supportive regulatory framework and clear regulatory visibility until 2015, the agency said.

The acquisition also will help to further improve the diversity of its businesses and cash flow, S&P added.

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