Moody’s lowers Hysan

Moody’s Investors Service said it lowered Hysan Development Co. Ltd.’s subsidiaries’ ratings. The agency trimmed Hysan’s issuer rating to Baa1 from A3 and its medium-term note program to (P) Baa1 from (P) A3. Moody’s also cut Hysan’s Elect Global Investments Ltd.’s backed senior unsecured ratings to Baa1 from A3 and its subordinated capital securities to Baa3 from Baa2. Hysan guarantees the Elect’s notes. Finally, Moody’s changed the outlook to stable from negative.

"The ratings downgrade reflects our expectation that Hysan's financial leverage will remain elevated over the next two to three years, as debt levels will increase further to fund its construction capital spending. This view is despite an expected earnings recovery following China's reopening and the company's deleveraging efforts," said Stephanie Lau, a Moody's vice president and senior credit officer, in a press release.

The improved outlook reflects an expectation that Hysan's earnings will gradually improve over the next one to two years, which will limit further deterioration in its financial profile from the current level, the agency said.

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