Moody's rates CK Hutchison hybrids Baa1

Moody's Investors Service said it assigned a Baa1 rating to the proposed euro-subordinated perpetual capital securities to be issued by CK Hutchison Capital Securities (Europe) Ltd., which is unconditionally and irrevocably guaranteed on a subordinated basis by CK Hutchison Holdings Ltd.

The proceeds of the hybrid instruments will be used by the company for the refinancing of existing debt and general corporate purposes, Moody's said.

The outlook is stable.

The proposed perpetual securities are considered hybrid securities, the agency said, and the Baa1 rating reflects the cumulative and deeply subordinated nature of these securities.

The perpetual securities will rank pari passu with the $1 billion subordinated guaranteed perpetual capital securities of CK Hutchison Capital Securities (17) Ltd. issued in May 2017, Moody's said, and will receive the same 50% equity treatment.

The ratings reflect the company's strong business position, diversified operations, balanced portfolio and excellent liquidity position, the agency said.

These strengths mitigate the group's moderate leverage metrics, 3 Group Europe's weaker position in some markets and event and operational risks arising from potential acquisitions, Moody's said.

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