Moody's rates Sun Hung Kai notes A1

Moody's Investors Service said it assigned an A1 rating to the proposed dollar-denominated senior unsecured notes due 2029 to be issued by Sun Hung Kai Properties (Capital Market) Ltd. under its $7 billion medium-term note program.

The notes will be unconditionally and irrevocably guaranteed by Sun Hung Kai Properties Ltd., Moody's said.

The outlook is stable.

The proceeds will be used to fund the company's general corporate activities, the agency said.

The rating reflects Sun Hung Kai's solid business and financial profile, which is supported by its strong recurring rental income, leadership position and long operating track record in Hong Kong, Moody's said.

The rating also considers the company's robust financial metrics and strong financial flexibility, the agency said.

The rating also takes into account the risks associated with Sun Hung Kai's geographic concentration in Hong Kong and increasing exposure to the more volatile Chinese property market, Moody's said.

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