Standard & Poor’s gives China Three Gorges Corp credit rating of “A”

14 August 2012

The long term debt of state company China Three Gorges Corp, which acquired a 21.35 percent stake in Portuguese power company EDP – Energias de Portugal, has been given a rating of “A,” credit rating agency Standard & Poor’s said adding that the company’s outlook was “stable.”

CTG’s debt rating is bolstered by China’s sovereign debt, as analysts believe that the Chinese state will provide the financial support that the Chinese power company would need were it to lose access to debt markets.

CTG’s autonomous rating, which it would be given if it had no government backing, is “BBB-” but, as the agency considers there is a “very high” possibility that the company would have the support of the Chinese state if it needed extraordinary funding, its rating is “A”. (macauhub)