Fitch cuts Swire Pacific view to negative

Fitch Ratings said it revised the outlook of Swire Pacific Ltd.'s long-term foreign-currency issuer default rating to negative from stable, while affirming it at A.

The outlook revision is underpinned by Swire's reducing, but still substantial capital expenditure program and the fact that its new investment properties in China are not immediately cash flow accretive, Fitch said.

The agency said it expects Swire's financial leverage to increase from historical levels, with the funds from operations/adjusted net leverage ratio likely to be in the range of 4.0x to 4.5x from 2009 to 2011.

The company's key strength is its property investment segment, bolstered by its high-quality assets, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.