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(The following statement was released by the rating agency) Oct 02 - Standard & Poor's Ratings Services today assigned its 'A' preliminary debt ratingto Chubu Electric
Power Co. Inc.'s (A/Negative/A-1) JPY500 billion domestic bond shelfregistration, effective for two years until Oct. 1, 2014. Chubu Electric is the third-largest power company in Japan
in terms ofelectricity sales, providing about 15% of the nation's total electricity. Theratings on Chubu Electric reflect its strong business and customer base. Thecompany has a
monopolistic position in its supply area. It runs powergeneration, electricity transmission and distribution, and retail operationsin a vertically integrated business model in the Chubu
region. Its transparentpricing mechanism also supports its credit quality, in our view. However, asoperator of the Hamaoka nuclear power plant, Chubu Electric continues to faceincreasing
operational and financial risks due to the disaster at TokyoElectric Power Co. Inc.'s (TEPCO; B+/Negative/B) Fukushima No. 1 nuclear powerplant. We have incorporated our view that
pressure on the ratings on ChubuElectric will continue because of a potential review of the existing favorableregulatory framework and worsening measures of financial performance. The
ratings on Chubu Electric reflect our opinion that there is a "moderate"likelihood of the government providing the company with timely and sufficientextraordinary support if it
were to experience financial distress. RELATED CRITERIA AND RESEARCH General Criteria: Rating Government-Related Entities: Methodology AndAssumptions, Dec. 9, 2010 2008 Corporate Criteria:
Analytical Methodology, April 15, 2008 ((Bangalore Ratings Team, Hotline:+91 80 4135 [email protected],Group id: [email protected],Reuters
Messaging:[email protected]))