S&P upgrades Towngas

Standard & Poor’s said it raised the long-term corporate credit rating on Towngas China Co. Ltd. to BBB+ from BBB.

The agency also said it affirmed the company’s cnA+ long-term Greater China regional scale rating.

The outlook is stable.

The upgrades reflect the company’s improved business strength, which stems from its good record of sound operating performance, stable profitability and business focus on regulated gas distribution, S&P said.

The agency also said it revised Towngas China’s business risk profile to satisfactory from fair and revised upward the stand-alone credit profile to BB+ from BB.

S&P said it continues to assess Towngas China as a strategically important subsidiary of the Hong Kong and China Gas Co. Ltd. The rating on Towngas China is, therefore, three notches above its stand-alone credit profile, the agency said.

Towngas China also established a record of good operating efficiency. The company manages gas sales prices well to protect its profitability, S&P said.

Nevertheless, the economic slowdown has affected demand, the agency added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.