Moody's alters Hysan view to negative

Moody's Investors Service said it changed to negative from stable the outlooks on Hysan Development Co., Ltd. (Hysan), Hysan (MTN) Ltd. and Elect Global Investments Ltd.

The agency also affirmed Hysan's Baa1 issuer rating, as well as the following ratings, which are guaranteed by Hysan: Hysan (MTN)'s provisional (P)Baa1 backed senior unsecured rating on its medium-term note program and its Baa1 backed senior unsecured notes under the MTN program and Elect's Baa1 backed senior unsecured and Baa3 backed preference stock ratings on its subordinated perpetual capital securities.

"The change in outlook to negative reflects our concerns that unfavorable interest rate and leasing market conditions will increase the likelihood of Hysan's credit metrics staying weak over the next 12-18 months," said Stephanie Lau, a Moody's vice president and senior credit officer.

The agency said it estimates Hysan's adjusted net debt/EBITDA (after pro-rata consolidation of its joint venture projects) will stay elevated at about 8.4x-8.7x for 2023-25.

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