Moody's: No change for Swire Pacific

Moody's Investors Service said it sees no immediate impact on Swire Pacific Ltd.'s A3 issuer and senior unsecured debt ratings from the company's proposed purchase of 12.45% of the shares in Hong Kong Aircraft Engineering Co. Ltd.

The outlook is stable.

Moody's said it considers this transaction will have a limited impact on Swire's consolidated financial profile, since the purchase amount is fairly modest relative to Swire's total adjusted debt of about HK$40 billion as of June 2009 and represents only about 1% of its asset base.

Moody's said believes such a transaction will allow Swire to offer a small degree of help to Cathay - in terms of cash flow and profit - as the airline makes its way through an extremely difficult external environment.

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