No ratings impact for HKCG's increased TCCL stake

HCKG’s acquisition of another 10.21 per cent of Towngas China Company has no impact on either company's ratings.

The rating outlook for TCCL remains positive and that for Hong Kong and China Gas Company is stable.
According to Moody’s AVP’Analyst Jennifer Wong, the acquisition amount of HK$907.5 million is low compared to HKCG's total assets and will not have any material impact on HKCG's credit profile
"This transaction will increase HKCG's shareholding in TCCL to 66.49 per cent from 56.28 per cent," says Wong.

"Although the acquisition indicates HKCG's enhanced commitment to TCCL as well as the growing cooperation between the two companies, TCCL's Baa3 rating already benefits from a two-notch uplift from its standalone rating of Ba2 based on our assessment of the likelihood that, as TCCL's largest shareholder, HKCG would provide the company with strong financial and operating support," adds Wong.

Moody's believes TCCL will continue to benefit from HKCG's market reach and asset base as well as its more than 140 years' experience in the utilities sector.

Follow the link for more news on

Also Read

Chief Execuive Lee talks green cooperation with Qinghai governor

Towngas net profits down by 16% YoY to $3.04b

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit