Summary: Hong Kong and China Gas Co. Ltd. (The) Jul 09
- ID: 1858716
- July 2009
- Region: China, Hong Kong
- Standard & Poors
The rating on Hong Kong and China Gas Co. Ltd. (Towngas) reflects the company's de facto monopoly in its home market of Hong Kong, the predictable profitability and cash flows of its core business in Hong Kong as a result of the full fuel cost pass-through scheme, and its modest financial risk profile. These strengths are partly offset by the higher business risks from Towngas' expansion into unregulated operations in China, uncertain regulatory risks in the mainland for piped gas businesses, and the company's maturing home market. Towngas has a very strong market position in Hong Kong, as the only piped gas provider. The company has a stable customer base of more than 1.6 million commercial, industrial, and residential customers,...
Companies mentioned in this report are: Hong Kong and China Gas Co. Ltd. (The),Towngas China Co. Ltd.
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