Fitch ups Kowloon-Canton to AA+

Fitch Ratings said it upgraded Kowloon-Canton Railway Corp.'s long-term local-currency issuer default rating to AA+ from AA and removed it from Rating Watch positive, where it was placed in June. Fitch said it also affirmed its long-term foreign-currency issuer default rating at AA and short-term foreign-currency issuer default rating at F1+.

The outlook is stable.

The upgrade, equalizing Kowloon-Canton's ratings with those of Hong Kong (foreign-currency issuer default AA/stable; local-currency issuer default AA+/stable; short-term issuer default F1+), follows greater clarity and certainty about the company's merger with MTR Corp. Ltd. (foreign-currency issuer default rating AA/stable; local-currency issuer default AA+/stable; short-term issuer default F1+).

Fitch said it believes support from Hong Kong will be further reinforced following the merger's close given a government policy objective of maintaining its financial health for the benefit of all its stakeholders.

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