S&P rates CLP Power securities A-

S&P said it assigned an A- long-term issue rating to a proposed offering of dollar-denominated perpetual subordinated capital securities that CLP Power Hong Kong Ltd. will guarantee.

Wholly-owned subsidiary CLP Power HK Finance Ltd. will offer the notes.

“We rate the perpetual securities two notches below our long-term issuer credit rating on CLPP to reflect the securities’ subordinated status and optional deferability. Based on our assessment of intermediate equity content, we will consider the securities as equity in CLPP’s financial statements. We will therefore reclassify 50% of the principal as debt and 50% of the distributions as interest when calculating our financial ratios.” said S&P in a press release.

S&P expects the proceeds to be used for refinancing CLPP’s outstanding perpetual securities, which have a first-call date of Nov. 7.

© 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.