Moody's: Swire Pacific unchanged

Moody's Investors Service said it sees no immediate impact on Swire Pacific Ltd.'s A3 issuer and senior unsecured debt ratings because of the company's decision not to proceed with the initial public offering of its key subsidiary, Swire Properties Ltd.

The outlook is stable.

Swire's credit profile remains appropriate for its rating, Moody's said.

Without the IPO, Moody's said it expects Swire's leverage to peak in 2010 before some de-leveraging in 2011, when earnings from its existing Chinese property projects increase and capital expenditure slows down. But this assumes an absence of material new investments, the agency said.

The key driver for Swire's financial profile will be the pace and size of its new property projects in China, Moody's said.

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