Business MirrorPublished on Sunday, 31 March 2013 21:12
MOODY’S Investors Service gave a stable outlook for power utilities in nine countries in Asia, including the Philippines.
Mic Kang, Moody’s vice president and senior analyst, said in a report entitled “Asian Power Utilities [excluding Japan]: Broad Stable Outlook; India an Outlier” that the outlook for power utilities in Asia will remain stable, except for India, for the next 12 to 18 months, primarily driven by government and regulatory policy continuity, as well as easing fuel prices.
The nine individual power utilities sectors covered by the report are China, Hong Kong, India, Indonesia, South Korea, Malaysia, the Philippines, Singapore and Thailand.
“The policy pillars of governments and regulators across the region will ensure that the major power utilities will maintain their dominant or monopolistic positions, while independent power producers will benefit from reliable purchase contracts,” King said.
The report discusses the sector both regionally and for the power-utilities sectors in each of the nine countries covered by Moody’s separately. It highlights Moody’s view that fundamental business conditions will remain stable over the next 12 to 18 months, except for India.
The international credit-rating agency pointed out that fundamental business conditions will remain stable since there is “no excessive competition leading to margin erosion for power utilities, no major constraints on fuel supply.”
Further, it said, increased operational cash flows from newly commissioned power plants, easier fuel prices and ad-hoc tariff increases or subsidies for state-owned power utilities will help offset the rise in capital expenditure expected over the outlook period. source
No comments:
Post a Comment