Summary: Towngas China Co. Ltd. Sep 11
- ID: 1921722
- September 2011
- Region: China
- Standard & Poors
The rating on Towngas China Co. Ltd. (TCCL) reflects the company's stand-alone credit profile of 'bb' and a three-notch uplift due to strong parental support from The Hong Kong and China Gas Co. Ltd. (HKCG; A+/Stable/--; cnAAA). TCCL's stand-alone credit profile reflects our view of the strong demand and growth potential for piped gas in China, and the captive market for the company's secured city-gas projects. Regulatory risks in China, TCCL's high reliance on income from connection fees, and the company's significant financial risk profile partly offset the above strengths. TCCL benefits from the Chinese government's promotion of the use of clean energy, the country's still-low gas penetration rate, and the increasing demand for piped gas. Continued urbanization and robust...
Companies mentioned in this report are: Towngas China Co. Ltd.
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