Moody’s: A1 to Sun Hung Kai securities

Moody's Investors Service said it assigned an A1 rating to the proposed senior perpetual securities to be issued by Sun Hung Kai Properties (Capital Market) Ltd., a wholly owned subsidiary of Sun Hung Kai Properties Ltd. (SHKP).

The perpetual securities will be unconditionally and irrevocably guaranteed by SHKP.

The outlook is stable.

Proceeds will be used for general corporate purposes.

"The A1 rating reflects SHKP's strong recurring rental income from its portfolio of high quality investment properties, its operating track record in the Hong Kong property market, high financial flexibility and prudent approach to financial management," Moody's vice president and senior credit officer Franco Leung said in a news release.

The agency said it expects SHKP's debt leverage will remain low at 14%-15% over the next 12 to 18 months, as the company will continue to deliver steady property sales growth and maintain its capital expenditure at low levels, particularly considering the high land prices evident in recent public auctions.

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