Moody's Vice President and Senior Credit Officer -- Boris Kan has said ‘our outlook for the A-Pac power sector is stable for 2021 as it has been since 2009. While the sector faced challenges this year as a result of the pandemic, they have been manageable overall and we expect broadly supportive business conditions across the region as economies recover’.
Further, Kan said ‘we do see some challenges in India's power sector and, to a lesser extent, unregulated utilities in Australia, China and Japan driven by evolving operating conditions. India is the only market with a negative power sector outlook because of weak power demand, additional payment delays by state-owned distribution companies and policy actions aimed at reducing stress for end-users.
In China, power demand recovery and falling interest rates will offset likely tariff declines as a result of increased market liberalisation but there will be delays in subsidy payments for renewable energy operators. Meanwhile, said Moody's, Australia's regulated utilities remain transparent and predictable but unregulated utilities will face ongoing challenges from policy uncertainty and price volatility.