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Moody's reviews Hongkong Land ratings for possible upgrade.

BANKING AND CREDIT NEWS-25 August 2010-Moody's reviews Hongkong Land ratings for possible upgrade(C)1994-2010 M2 COMMUNICATIONS

25 August 2010 - Moody's has put on upgrade review the Baa1 issuer and senior unsecured debt ratings on Bermuda-based property investor and developer Hongkong Land Holdings Ltd (SIN:H78), or HKLH.

At the same time, Fitch placed on upgrade review the A3 issuer and senior unsecured debt ratings on its Hong Kong-based subsidiary, Hongkong Land Co Ltd (HKLC).

"The review has been prompted by HKLH's resilience in the 2008/09 down market, as evidenced by ongoing growth in revenue and high occupancy rates," said Peter Choy, a vice president and senior credit officer at Moody's.

"HKLH has aptly demonstrated its ability to manage its property investment and development businesses and produce positive results, which have improved its first-half 2010 credit metrics -- EBITDA/interest of 14.4x and Debt/EBITDA of 2.6x," he noted, adding that "the company's liquidity remains strong, supported by undrawn committed bank facilities of USD1.7bn (EUR1.34bn) as at 30 June 2010."

The agency notes that in the review it will mainly observe HKLH's acquisition and expansion plans, as well as its capacity to maintain its current credit profile through the cycle.

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Publication:M2 Banking & Credit News (BCN)
Date:Aug 25, 2010
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