Moody's changes Hysan view to negative

Moody's Investors Service said it changed to negative from stable the outlook on Hysan Development Co., Ltd. (Hysan) and its wholly-owned subsidiaries, Hysan (MTN) Ltd. and Elect Global Investments Ltd.

"The change in outlook to negative mainly reflects our expectation that Hysan's latest joint venture in the To Kwa Wan project will further increase its financial leverage, particularly considering that the company's financial buffer is already diminished because of its earlier acquisitions," said Stephanie Lau, a Moody's vice president and senior credit officer, in a press release.

Moody's also affirmed Hysan's A3 issuer rating, the ratings, guaranteed by Hysan, including the provisional (P)A3 backed senior unsecured rating on Hysan (MTN)’s medium-term note program, the A3 backed senior unsecured rating on the notes issued under the program and Elect Global’s A3 backed senior unsecured and Baa2 backed preference stock ratings.

"The rating action also considers increased event and development risks following several acquisitions that the company has made since 2021," added Lau.

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