S&P affirms Hong Kong Mortgage

Standard & Poor's said it assigned its AA/A-1+ foreign- and local-currency senior unsecured ratings to a $3 billion multicurrency medium-term notes program by Hong Kong Mortgage Corp. Ltd., and affirmed its foreign- and local-currency AA/A-1+ counterparty credit ratings.

The outlook is stable.

The program would enhance the company's already strong financial flexibility by diversifying its funding sources, the agency said. The ratings reflect the company's strong standalone credit quality, which is further enhanced by support from its owner, the government of the Hong Kong Special Administrative Region, the agency said.

These strengths are balanced by the company's highly concentrated exposure to residential mortgages in a single geographic market, S&P said, and the challenges in acquiring new residential mortgage loans in Hong Kong.

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