Moody's lowres J-Power to negative view

Moody's Investors Service said it revised Electric Power Development Co., Ltd.'s (J-Power) outlook to negative from stable.

The agency also said it affirmed the company's A1 issuer and senior unsecured bond ratings, as well as the provisional A1 senior unsecured shelf registration.

The credit profiles of J-Power's offtakers will gradually deteriorate because of the deregulation of the industry, Moody's said.

As the Japanese utilities industry deregulates, Moody's said it will increasingly place a higher importance on the financial metrics of Moody's-rated Japanese utilities in offsetting the decline in regulatory protections, the agency said.

Moody's said it expects that many of J-Power's offtakers will not be able to materially improve their credit metrics at least over the next 12- to 18-months.

The agency said it expects that J-Power's leverage will remain high, leaving little cushion for its ratings level.

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