Moody’s affirms Hysan

Moody's Investors Service said it affirmed Hysan Development Co., Ltd.'s A3 issuer rating.

Moody's also affirmed Hysan (MTN) Ltd.'s provisional A3 backed senior unsecured rating on its medium-term note program and its A3 backed senior unsecured notes under the program.

The agency also affirmed Elect Global Investments Ltd.'s A3 backed senior unsecured and Baa2 backed preference stock ratings on its subordinated perpetual capital securities.

The outlooks remain stable.

Moody’s said the actions follow an announcement on May 12 that a 60:40 joint venture formed between Hysan and Chinachem Group, respectively, won a land tender for a commercial site situated at Caroline Hill Road, Causeway Bay.

“This large-scale investment will significantly increase Hysan's financial leverage, reduce its financial flexibility and introduces some degree of execution risk given the long construction period,” Stephanie Lau, a Moody's vice president and senior credit officer, said in a news release.

“Nevertheless, the company's ample financial buffer prior to the transaction can absorb the impact.”

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