Chubu Electric Power's shelf registration gets (P)A3 rating from Moody's

The shelf registration totals JPY 500 billion.

Moody's Japan K. K. has assigned its (P)A3 rating to the domestic shelf registration of Chubu Electric Power Co., Inc. (Chubu Electric), and it's been noted that the rating outlook is stable.

According to a release from Moody's, the specific shelf registration rated is: JPY 500 billion, effective October 2, 2014.

The rating reflects the company's strong franchise in its operating area, effectively limited competitive factors in the industry, and the importance of its public utility service backed by the established regulatory framework and the Japanese government's energy policy.

Here's more from Moody's:

The rating also reflects the economic, financial, and political conditions that are expected to make it more difficult for the company to continue recovering higher costs caused by the expanded thermal power generation on a timely basis.

However, Moody's also believes that the regulatory framework is fundamentally supportive of the industry, from the long-term perspective.

Chubu Electric Power Co., Inc., headquartered in Nagoya, Japan, is the third-largest electric utility in Japan in terms of power generation and sales.