S&P rates Link notes A

Standard & Poor's said it assigned an A long-term debt rating to Link Finance (Cayman) 2009 Ltd.'s $1 billion guaranteed euro medium term note program.

Proceeds will be used for the general corporate purposes of Link Real Estate Investment Trust (A/stable) including refinancing debt.

The rating reflects the explicit guarantee for the program by the companies that comprise Link REIT, which are Link Holdings Ltd., The Link Properties Ltd. and HSBC Institutional Trust Services (Asia) Ltd.

The rating on Link REIT reflects the trust's tenancy profile and its large, cash-generative rental properties, which are less affected than retail properties by volatile economic cycles.

The rating is also supported by the fact that Link's properties are spread across various districts in Hong Kong and the company has good financial flexibility, S&P said.

These strengths are tempered by the high concentration of the trust's properties in Hong Kong compared with its global peers' and its limited pricing flexibility, the agency said.

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