Bangkok--14 May--Standard & Poor's Standard & Poor's Ratings Services said today that the mega earthquake that hit China's Sichuan province on May 12, 2008, could put to the test companies highly exposed to the area. "While the full account of casualties and damages inflicted by the 7.9-magnitude earthquake is still unknown, we do not anticipate any significant impact to our ratings on Chinese and Hong Kong companies as none has a substantial asset concentration in the affected areas," said Standard & Poor's credit analyst Ryan Tsang. Towngas China Co. Ltd. (BBB-/Stable/--) operates 14 piped gas projects in Sichuan province, some of which have been affected; however, the financial impact on the company is unlikely to be material and its credit profile is unlikely to be affected. "The exposure of Chinese insurance companies to this event is unlikely to be large because the hardest-hit areas are primarily rural, which tend to have limited insurance coverage, albeit it will take months to have a clear picture of quake-related insurance claims," added Standard & Poor's credit analyst Connie Wong. We are assessing the potential risks to these companies' operations and businesses, including supply chain issues and customer concentration. "Property developers with a high concentration of planned presale in Chongqing, Chengdu, and other affected areas may face liquidity pressure if their projects have suffered damages or the property market in the affected areas does not recover quickly," noted Mr. Tsang. Although we believe the damage to the major centers in southwest China, Chongqing and Chengdu, appears to be manageable and is not likely to seriously cripple the regional economy, it could take a year or two for Wenchuan County and other hard-hit areas to fully recover and completely rebuild their infrastructure. Depending on government relief measures and individual insurance coverage, some companies could come under extreme financial pressure if their key operations are disrupted or their assets are badly damaged. Media Contact: Mimi Barker, New York (1) 212-438-5054, [email protected] Analyst Contacts: Ryan Tsang, CFA, Hong Kong (852) 2533-3532 Connie Wong, Hong Kong (852) 2533-3553 Standard & Poor's, a division of The McGraw-Hill Companies (NYSE:MHP), is the world's foremost provider of financial market intelligence, including independent credit ratings, indices, risk evaluation, investment research and data. With approximately 8,500 employees, including wholly owned affiliates, located in 23 countries and markets, Standard & Poor's is an essential part of the world's financial infrastructure and has played a leading role for more than 140 years in providing investors with the independent benchmarks they need to feel more confident about their investment and financial decisions. For more information, visit http://www.standardandpoors.com. Key Contacts: Americas Media Relations: (1) 212-438-6667 media_ [email protected] Americas Customer Service: (1) 212-438-7280 [email protected]