Moody's affirms Hutchison Whampoa

Moody's Investor's Service said it affirmed Hutchison Whampoa Ltd.'s A3 debt ratings but maintained its negative outlook on the ratings.

The agency said the company's risk profile has improved in the last 12 months. The construction, technology and operating risks related to its 3G networks have all to a large extent been significantly reduced. Moreover, the company has effectively managed the project's funding risk, while the group's refinancing risk has been further lowered.

At the same time, the company retains a substantial level of balance sheet liquidity and its other business lines continue to exhibit solid operating fundamentals, including sound growth in operating cash flow.

Moody's said the outlook remains negative due to the uncertainty that persists as to whether Hutchison Whampoa will achieve its plans for commercializing its 3G business, which remains substantially cash flow negative and has materially impacted the group's overall credit profile.

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