Moody's rates Kowloon-Canton Railway

Moody's Investors Service said it assigned an Aa3 rating to the $3 billion medium-term note program of Kowloon-Canton Railway.

The outlook is stable.

The net proceeds will be used for the repayment of existing debt and general corporate purposes, Moody's said.

The rating reflects its underlying credit strength - as demonstrated in its ownership of strategically important rail assets that earn steady cash flow from MTR Corp. Ltd. and without any operating risk - and the strong support of the Hong Kong government, Moody's said.

Such strong government support results in uplift from its standalone Baa1 rating under Moody's approach for government-related issuers, the agency said.

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