Moody's affirms Hutchison Whampoa

Moody's Investors Service said it affirmed the A3 debt ratings of Hutchison Whampoa Ltd. (HWL) and its guaranteed subsidiaries following its announcement of its results for fiscal 2005.

The outlook remains stable.

"The rating affirmation reflects 1) the stability and continued strong operating and financial performance of HWL's diversified portfolio, which includes quality non-3G businesses, 2) improvements in its 3G performance, 3) the group's continued strong liquidity and financial flexibility and 4) the expectation that gross debt and net debt had both peaked in June 2005," said lead analyst Elizabeth Allen.

"On the other hand, the rating is constrained by HWL's weak credit metrics, while cash funding is still required for the highly competitive 3G business. The latter has yet to turn cash flow positive and is not expected to do so until at least 2007," Allen added.

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