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Summary: Hongkong Electric Co. Ltd. Dec 12 Product Image

Summary: Hongkong Electric Co. Ltd. Dec 12

  • ID: 2359483
  • December 2012
  • Region: Hong Kong
  • Standard & Poors

Abstract
The rating on Hong Kong-based vertically integrated electric utility Hongkong Electric Co. Ltd. (HEC) reflects the company's monopoly in its service area, the favorable regulatory environment, stable electricity demand in Hong Kong, and "modest" financial risk profile. The concentration of HEC's generation assets at a single site and the company's reliance on coal as a major fuel source offset these strengths. HEC's monopoly in Hong Kong and Lamma islands supports the company's "excellent" business risk profile. HEC accounts for 26% of Hong Kong's total electricity supply. Its generation assets, with installed capacity of 3,736 megawatts, are located on Lamma Island. We expect HEC to maintain its adjusted EBITDA margin of about 70% over the next two years. The company benefits...

Companies mentioned in this report are:
- Hongkong Electric Co. Ltd.

Action: Review

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