Fitch affirms City Telecom

Fitch Ratings said it affirmed City Telecom (HK) Ltd.'s long-term foreign- and local-currency issuer default ratings at BB.

The outlook is stable.

The ratings reflect the company's solid financial profile, Fitch said, and its strong position as the second-largest broadband service provider in Hong Kong.

However, despite solid growth momentum in its core telecom operation benefiting from its strong network competitiveness, the company's profitability is likely to deteriorate due to increasing content production costs in the short- to medium-term, the agency said.

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