[ET Net News Agency, 5 May 2020] S&P Global Ratings today assigned its 'A' long-term
issue rating to CK Hutchison International (20) Ltd.'s proposed senior unsecured
U.S.-dollar notes.
The notes are unconditionally and irrevocably guaranteed by CK Hutchison Holdings Ltd.
(00001)(CK Hutchison; A/Stable/--). The Hong Kong-based, globally diversified conglomerate
will use the proceeds for refinancing and for general corporate purposes.
The credit rating agency equalized the rating on the notes with the issuer credit rating
on CK Hutchison. This is because the ratio of the company's secured debt and subsidiaries'
unsecured debt (including their lease liabilities) to its total adjusted debt as of 31
December 2019 is 69%. The ratio is below S&P's more liberal notching-down threshold of 75%
for a significantly diversified company, to reflect the benefit the diversity of assets
could provide to mitigate subordination.
The stable outlook on the issuer credit rating on CK Hutchison reflects the agency's
expectation that the company will prudently manage its financial leverage. (KL)