S&P's Hutchinson Whampoa ratings unaffected

Standard & Poor's said its A- long-term corporate credit rating on Hong-Kong based Hutchison Whampoa Ltd. was not immediately affected by the company's decision to delay the public listing of its third-generation telecommunications operations in Italy.

S&P said the delay reinforces the negative outlook on the rating, as the public listing was expected to curb rising corporate net debt and reduce Hutchison's exposure to third-generation risks. Weak financial metrics remain a key concern for the company.

In 2005, the company increased investment in retail and property and reduced its controlling ownership interest in well-established assets, such as Hong Kong ports and Australian utility businesses. While assets sales provide cash flow to support debt reduction, the sell-down of high-quality businesses may also reduce recurring cash flows and increase consolidated business risk, the agency said.

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