Financial News
Written by: Zhang Weilun
2020-04-25 11:18
Date of last update: 2020-04-25 11:18MTR Corporation (0066) was downgraded. As Fitch once again lowered the sovereign credit rating of the Hong Kong government, MTR's credit rating was also downgraded by the investment rating agency. Fitch pointed out that MTR ’s long-term foreign currency and local currency issuer default rating will be reduced from AA to AA-, and the rating prospect is stable.
At the same time, the investment rating agency downgraded MTR's priority prime mortgage rating from AA to AA-, and confirmed MTR's short-term foreign currency default rating to F1 +.
Fitch expects that the Hong Kong government will provide additional support when the MTR needs it. When considering the MTR rating, in addition to taking into account the aforementioned factors, it will also consider that the MTR is controlled by the government, the company is the only railway operator in Hong Kong, and the government The impact of default.
The investment rating agency pointed out that if the government rating is positively adjusted and MTR is strongly supported by the government, the company's rating is expected to be upgraded. If the government's sovereign rating is downgraded, or even the government's control power within the MTR is diluted, it will negatively affect the MTR's rating.
MTR Fitch
