Moody's ups Kowloon-Canton Railway

Moody's Investors Service said it upgraded to Aa2 from Aa3 its issuer and senior unsecured debt ratings on the Kowloon-Canton Railway Corp.

The ratings remain on review for possible upgrade following the agency's decision to place on review for possible upgrade the Aa2 sovereign ratings on the Hong Kong Special Administrative Region.

The upgrade reflects an expectation that the company will play an increasingly important role in Hong Kong's transportation policy, following the increase in Hong Kong's investment in mass transit and its cross-border transport service, Moody's said.

The increased investment will further strengthen the relationship between the company and the sovereign, the agency said, and closely links their ratings.

The high level of government support results in a rating uplift to the final Aa2 level, Moody's added.

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