Fitch rates Hutchison Whampoa note A-

Fitch Ratings said it assigned an expected A- rating to Hutchison Whampoa Finance UK plc's proposed £500 million notes, which will be unconditionally and irrevocably guaranteed by Hong Kong-based Hutchison Whampoa Ltd.

The outlook is stable.

Net proceeds from the issue are expected to be used primarily to refinance the existing debt of Hutchison Whampoa and its subsidiaries.

The rating reflects Fitch's view that the proposed notes issue will rank equally with Hutchison Whampoa's existing senior unsecured debt. The A- issuer default rating and stable outlook are in turn supported by Hutchison Whampoa's diversified business mix, strong and steady cash flows from traditional businesses such as ports and investment properties, high liquidity, well spread debt maturity profile and strong financial flexibility.

The ratings are constrained, however, by the continued weak performance of Hutchison Whampoa's 3G telecommunications business, the agency said.

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