Moody's rates Swire Pacific notes A3

Moody's Investors Service said it assigned an A3 rating with a positive outlook to the senior unsecured fixed-rate notes to be issued by Swire Pacific MTN Financing Ltd., a wholly-owned financing subsidiary of Swire Pacific Ltd., and affirmed Swire's A3 issuer rating.

The outlook is positive.

The $400 million 10-year notes are guaranteed by Swire and are pursuant to its $2.5 billion medium-term note program.

The rating continues to reflect Swire's good quality property investment portfolio and its well-established and sector-diversified business portfolio, Moody's said. These features provide substantial recurring cash flow to the group, the agency said.

The rating also reflects Swire's active expansion in China, principally in investment properties, Moody's said. Most of these investments only will be completed in the medium term, the agency said, thus exposing the company to execution risk and market uncertainty.

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