Moody's affirms Hutchison Whampoa

Moody's Investors Service said it has affirmed the A3 debt rating for Hutchison Whampoa Ltd. and its guaranteed finance subsidiaries in response to its proposed spin-off of Hutchison Telecommunications International Ltd. onto the main board of The Hong Kong Stock Exchange.

The spin-off will involve Hutchison transferring to Hutchison Telecommunications' interests in fixed-line, 2G and 3G mobile telecommunications businesses in Hong Kong as well as its interests in mobile telecommunications businesses in India, Thailand, Israel, Macau, Sri Lanka, Ghana and Paraguay.

The outlook remains negative.

Moody's said the rating affirmation reflects Moody's opinion that the cash proceeds from the potential spin-off will enhance Hutchison's financial flexibility. Additionally, the exercise will realize some of the hidden value in Hutchison's balance sheet and provide an additional platform to fund the operations of Hutchison Telecommunications.

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