Yep - Desalination - Israelis and others including the Chinese - maybe google desal plants China.
Drip irrigation - Israeli coy - Net something. Probably be some dealing with specific industrial wastes eg paper mills.
However these and other Coys to my knowledge do not have a partner like the Central Government owned 3 Gorges Corp - who want to sell the JV technology, and want to get into clean energy having aced hydro-electric power. History tells us they probably won't be happy to just be ín' clean energy but to be a world leader. They are already in wind clean energy and researching tidal clean energy.
Rating Action:
Moody's upgrades China Three Gorges to Aa3; outlook stable
Global Credit Research - 19 May 2015
Hong Kong, May 19, 2015 -- Moody's Investors Service has upgraded China Three Gorges Corporation's (CTG) issuer rating to Aa3 from A1.
The outlook is stable.
RATINGS RATIONALE
The upgrade in the issuer rating to Aa3 from A1 reflects the removal of notching for structural subordination.
CTG's Aa3 rating incorporates a five-notch uplift based on the expected very high level of support from the Chinese government (Aa3, stable), under Moody's joint default analysis approach for government-related issuers (GRIs).
"The five notch rating uplift reflects our expectation of very high support from the Chinese central government" says Ada Li, a Moody's Vice President and Senior Analyst, adding "As such, we expect the central government to step in if the company encounters financial difficulties".
"Notwithstanding the presence of priority debt at the operating subsidiary level, we have removed notching, due to our expectation that in a financially distressed situation, support from the government would be likely provided to CTG as the holding company, thereby improving the position of its creditors over operating company creditors", Li says.
Accordingly, we have raised the Baseline Credit Assessment (BCA) to baa2 from baa3 reflecting the removal of subordination notching and consequently upgraded the issuer rating to Aa3 from A1.
Our expectation for very high support is driven by CTG's strategic importance to the state's clean energy development initiatives and other social functions, including flood control, the high reputation correlation, given its high-profile hydroelectricity projects, and the government's strong history of support.
CTG's BCA of baa2 continues to reflect its dominant position in China's hydropower industry; a policy framework that favors renewable energy; possession of large-scale installed assets with sizeable cash flows; as well as its good access to the capital markets and banking credits. The Three Gorges Projects is an iconic project for the current Chinese government as the largest hydroelectricity power in the world", says Li.
The standalone rating is constrained by the risks associated with the Three Gorges Project's social and environmental problems, which may result in large contingent liabilities and reputational risk; vulnerability to weather conditions by business nature; sizeable capital spending for future hydropower projects domestically and overseas, which will entail sizable execution risk; and high levels of concentration in generation assets.
"CTG's standalone credit metrics will remain stable, as improved earnings from newly commenced projects balance the increase in capital expenditure," adds Li.
Moody's expects CTG's financial metrics will remain in line with its baa2 BCA for the next two to three years, while adjusted funds from operations to debt will range over 15%-18%, and adjusted debt to capitalization will stay below 40%.
The ratings outlook is stable, reflecting our expectation that: (1) CTG will roll out its projects according to plan; (2) the policy and regulatory environment will remain stable; and (3) the associated social and environmental problems will not deteriorate suddenly.
Upward rating potential is limited in the near term as CTG's rating is already on par with the sovereign rating. An upgrade of CTG's standalone credit could occur, if CTG generates sizeable free cash flow to reduce leverage on a sustainable basis.
Its standalone rating would be lowered if: (1) CTG incurs material cost overruns or delays in its major projects; (2) it is unable to obtain sufficient external funding to support capital expenditure or refinance maturing debt; (3) social and environmental problems lead to significant liabilities; or (4) changes in government policy lead to an erosion of profitability and cash flow.
The credit metrics that we would consider for a downgrade include: adjusted debt to capitalization above 50% and/or funds from operations to debt below 10%.
As the Aa3 rating incorporates a very high level of support from the Chinese government, the rating could come under downward rating pressure if the sovereign rating is downgraded, or if there is any adverse change in the strategic importance of CTG and its relationship with the government.
The methodologies used in this rating were Regulated Electric and Gas Utilities published in December 2013, and Government-Related Issuers published in October 2014. Please see the Credit Policy page on
www.moodys.com for a copy of these methodologies.
China Three Gorges Corporation (CTG) is a wholly state-owned enterprise directly under the purview of the State-owned Assets Supervision and Administration Commission (SASAC) of the State Council. CTG was set up in 1993 as the owner and operator of the Three Gorges Project, the world's largest hydroelectric project in terms of total installed capacity, and which is located on the Yangtze River.
CTG also owns and operates the Gezhouba power station and is mandated by the government to develop four large hydropower projects downstream on the Jinsha River. Among them, the Xiangjiaba and Xiluodu power stations commenced full operations in 2014, and the rest of the projects are to commence operation in stages around 2021.
As of end-2014, CTG's total installed generation capacity for hydropower was around 46.3GW, which accounted for 15.3% of China's total hydropower installed capacity. It also had another 28GW of capacity under construction or under planning.
REGULATORY DISCLOSURES
For ratings issued on a program, series or category/class of debt, this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the rating action on the support provider and in relation to each particular rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on
www.moodys.com.
For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this rating action, and whose ratings may change as a result of this rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.
Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.
Please see
www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.
Please see the ratings tab on the issuer/entity page on
www.moodys.com for additional regulatory disclosures for each credit rating.
The first name below is the lead rating analyst for this Credit Rating and the last name below is the person primarily responsible for approving this Credit Rating.
Ada Li
Vice President - Senior Analyst
Project & Infrastructure Finance
Moody's Investors Service Hong Kong Ltd.
24/F One Pacific Place
88 Queensway
Hong Kong
China (Hong Kong S.A.R.)
JOURNALISTS: (852) 3758 -1350
SUBSCRIBERS: (852) 3551-3077
Terry Fanous
MD - Infrastructure Finance
Project & Infrastructure Finance
JOURNALISTS: (852) 3758 -1350
SUBSCRIBERS: (852) 3551-3077
Releasing Office:
Moody's Investors Service Hong Kong Ltd.
24/F One Pacific Place
88 Queensway
Hong Kong
China (Hong Kong S.A.R.)
JOURNALISTS: (852) 3758 -1350
SUBSCRIBERS: (852) 3551-3077
Moody's upgrades China Three Gorges to Aa3; outlook stable
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