S&P Rates CLP Holdings Unit's Proposed Perpetual Securities A

MT Newswires Live2025-01-02

S&P Global Ratings has given an A- long-term issue rating to CLP Power HK Finance's proposed $500 million perpetual subordinated capital securities, according to a Thursday release.

Electricity company CLP Power Hong Kong will guarantee the securities.

S&P views the proposed issuance as having intermediate equity content until its first reset date, aligning with the rating agency's criteria on loss absorption capacity and cash preservation under shocks.

The perpetual securities' rating is two notches below the guarantor's long-term issuer credit rating, given its subordinated nature and optional deferability.

The company will use the proceeds to refinance the $500 million hybrid securities issued in 2019.

CLP Power Hong Kong is a subsidiary of CLP Holdings (HKG:0002).

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment