Moody’s says Asia utilities outlook negative on acquisitions/capex
A growing number of debt-funded acquisitions combined with heavy capex requirements among rated utilities companies have played key roles in Moody’s Investors Service’s negative outlook for the Asian utilities sector over the next 12-18 months, says a newly-released report from the rating agency.
The report also cites margin pressure on issuers from higher fuel costs and the lack of automatic mechanisms for passing on rising costs to end users as additional explanations for the outlook.
Hong Kong
Ken Chan Hong Kong
Gary Lau