[ET Net News Agency, 6 April 2020] S&P Global Ratings revised its outlook on Hong Kong
and China Gas Co. Ltd. (HKCG)(00003) to negative from stable. At the same time, the credit
rating agency affirmed its 'A' long-term issuer credit rating on the company.
S&P also affirmed its issue ratings on all outstanding notes issued by Towngas (Finance)
Ltd. and HKCG (Finance) Ltd. and guaranteed by HKCG.
It estimated minimal rating headroom in HKCG's core credit metrics, given the flat
operating cash flow in 2019 with growing and sizable debt. The COVID-19 pandemic, low oil
prices, and a warm winter in Hong Kong will continue to drag on the company's pace of
recovery.
S&P believes HKCG's credit stability is contingent on management executing prudent
financial management, through controlling capex and investments and adopting a flexible
dividend policy amid external turbulence, and a likely recovery in gas sales demand.
The negative outlook reflects HKCG's stretched credit ratios, and a slow recovery pace
in 2020-2021. (KL)
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00003 HK & CHINA GAS
Nominal 
5.660 -0.030 (-0.527%) Research Report
06/04/2020 11:03
HK & China Gas (00003) outlook revised to negative - S&P
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