CYPC's rating is equalised with that of CTG, in accordance with Fitch's Parent and Subsidiary Rating Linkage criteria.
An upgrade of CTG's ratings, provided linkages between CYPC and CTG remain intact.
A downgrade of CTG's ratings or a weakening of the linkages between CTG and CYPC.
Integrated with Parent: Fitch equalises the ratings of CYPC with that of CTG because of the strong integration between the two.
In addition, CYPC continues to function as an important financing vehicle within CTG group.
Hydrological Risks: CYPC's four operational hydropower plants on the Yangtze River are dependent on water flow and rainfall in the catchment area along the river.
Robust Cash Generation: CYPC generates robust cash flows from its hydropower plants on the Yangtze River.
'BBB' Standalone Credit Profile: CYPC's short-term credit metrics will be temporarily stretched by the large acquisition of the two hydropower plants, which requires a net cash payment of around CNY13.3bn and the assumption of net debt of over CNY90bn at the company being acquired.