Moody's rates WTT notes B1

Moody's Investors Service said it assigned a B1 corporate family rating to WTT HK Ltd.

The agency also said it assigned a B1 rating to the proposed senior unsecured notes to be issued by WTT Investment Ltd. and guaranteed by WTT HK.

The outlook is stable.

The proceeds will be used to refinance the holding companies' existing indebtedness, namely a senior term loan of HK$4.2 billion and a mezzanine loan of HK$800 million, Moody's said.

The ratings reflect WTT's competitive position in Hong Kong's enterprise fixed-line telecom market, established network infrastructure with modest capital expenditure needs, diverse customer base and high profitability, the agency said.

The ratings are constrained by WTT's elevated financial leverage, high concentration in geography and business, Moody's said, and relatively modest scale as compared to some of its rated fixed-line telecom peers globally.

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