Utilities report loans, dividends, credit ratings

Utilities report loans, dividends, credit ratings

The Japanese government`s new measures to deregulate the country`s electric power industry will not impair the creditworthiness of the electric utilities, according to Moody`s Investors Service. The rating agency assigns high investment grade ratings to Japan`s nine electric utilities based on their importance to the country`s economy and a favorable operating environment.

Bolivian Power Co. has announced a first-quarter cash dividend of (US)19 cents per share on the company`s common stock, a (US)1-cent increase per share from the previous quarter.

National Power Corp. of the Philippines has arranged a (US)$100-million loan through JP Morgan Securities Asia, according to Singapore`s Business Times. The loan is the first, public or private, since 1983 when the country was in a debt crisis and the country defaulted on external debt payments. National Power is expected to sell one holding company and six subsidiaries this year as part of the nation`s privatization agenda.

Moody`s Investors Service has placed Hero Asia Company Ltd. on review for possible downgrade. Hero Asia is a corporation set up by China Long Yuan Electric Power Group Co. to provide partial financing for construction of two coal-fired power plants in Jiangsu Province, China. The plants will be owned by a joint venture between Hero Asia, Long Yuan Group, Jiangsu Provincial Power Co. and the local host municipal authorities. The company is being reviewed due to China`s ongoing economic reform program.

Tenaga Nasional Berhad`s long-term foreign currency rating has been upgraded from A1 to A2 by Moody`s, following the rating agency`s decision to raise Malaysia`s sovereign rating for foreign currency debt to A1 from A2. Tenaga is headquartered in Kuala Lumpure, Malaysia.

Hongkong Electric Holdings exceeded expectations, reporting a 13.6-percent jump in net profit to (US)$2.8 million during 1994, according to the Financial Times. Hongkong Electric is the only electricity supply for Victoria Island.

Trans Power New Zealand Ltd. has received a Prime-1 rating from Moody`s, reflecting expectations that the utility will maintain its dominant role in the country`s electricity transmission. Trans Power is backed by government regulations and price-setting, contributing to its low business risk and strong cash flow.

ABB Asea Brown Boveri reports a 40-percent increase in net income for the first quarter of 1995, continuing a profit trend from the previous year. Percy Barnevic, CEO, said ABB has worked to cut costs by relocating manufacturing to low-wage countries.

PowerGen plc, a UK power generation company, has announced a (US)24.2-cents dividend per share for the year ended April 2, 1995. Revenue totaled (US)$4.67 billion, with (US)$881-million profit before tax.

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