S&P rates Castle Peak Power notes AA-

S&P said it assigned an AA- long-term issue rating and cnAAA long-term Greater China regional scale rating to a proposed issue of dollar-denominated senior unsecured notes by Castle Peak Power Finance Co. Ltd., a wholly owned subsidiary of Castle Peak Power Co. Ltd.

This issuance is a drawdown off Castle Peak Power's existing $2 billion medium-term note program dated June 7, 2017, the agency explained. The company will unconditionally and irrevocably guarantee the notes.

The rating on the notes is the same as the corporate credit rating, reflecting the effect of credit substitution and guarantee, S&P said.

The agency said it expects the company's ratio of priority claims-to-total assets after the notes issue to remain minimal.

S&P said it believes the company will use the proceeds from the notes to refinance the commercial bank facility for the development of the combined cycle gas turbine project in Black Point Power Station.

The stable outlook reflects the outlook on the company's parent, CLP Power Hong Kong Ltd., the agency said.

© 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.