Moody's cuts Hongkong Land view to negative

Moody's Investors Service said it changed to negative from stable its outlooks for the A2 issuer and debt ratings of Hongkong Land Co. Ltd. and the A3 issuer rating of Hongkong Land Holdings Ltd.

According to Moody's, the outlook change is in response to Hongkong Land Holdings' announcement of its investment in a joint venture with Shun Tak Holdings Ltd. for the development of a mixed residential, retail and hotel project located on a Nape waterfront site adjacent to the proposed MGM Grand Paradise casino/hotel complex in Macau.

Moody's said that the Hongkong Land Group's financial metrics and key debt protection measures are anticipated to weaken as it raises debt to partly fund the project and its other property investments. Moody's recognizes that these investments will provide the group with medium-term financial and diversification benefits, but on the other hand, they increase the group's business risk profile given its increasing development exposure and debt levels.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.