S&P rates Hutchison Whampoa A-

Standard & Poor's said it assigned an A- long-term issue rating and cnAA long-term Greater China credit scale rating to the proposed issue of benchmark-sized two tranches of euro-denominated senior unsecured notes guaranteed by Hutchison Whampoa Ltd.

Hutchison Whampoa Europe Finance (12) Ltd. will issue the notes.

The group will use the notes proceeds to refinance existing borrowings. The proposed issue is in line with an expectation that the group will continue to extend its debt maturity profile and pre-fund upcoming debt maturities, S&P said.

The ratings reflect the group's good cash flows from diverse businesses with strong competitive positions, a record of divesting assets and realizing value from diverse assets, the agency said, and its strong liability management and financial flexibility.

The company's modest financial ratios for the rating and the low profitability and weak cash flows of its third-generation (3G) telecommunications operations temper its strengths, S&P said.

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