S&P puts Sun Hung Kai Properties on watch

Standard & Poor's said it placed on CreditWatch with negative implications the A+ long-term corporate credit rating and cnAAA Greater China credit scale ratings on Sun Hung Kai Properties Ltd. and the A+ issue ratings and cnAAA Greater China credit scale ratings on the company's outstanding senior unsecured notes.

S&P said it placed the ratings on the company on CreditWatch to reflect its view that the arrest of three of the company's executive directors and the related investigation by the Independent Commission Against Corruption may weaken the stability of its management and reputation of the company.

"The arrests are unlikely to have any immediate impact on SHKP's daily operations because it is a well-established company. But the magnitude and scope of the ICAC investigation remains uncertain," said S&P credit analyst Bei Fu in a news release. "We believe the company has ample liquidity and strong capital market standing to meet its short-term financing needs."

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