S&P Rates HKT Capita's Proposed US Dollar Notes BBB
S&P Global Ratings has placed a BBB long-term issue rating on HKT Capital's proposed U.S. dollar notes, according to a Tuesday release.HKT Capital and parent Hong Kong Telecommunications act as guarantors of the $3 billion medium-term note program under which the proposed notes will be issued, S&P said.The proposed notes' rating is in line with the company's issuer credit rating, considering limited subordination risk in the capital structure, S&P said.The company's rating reflects S&P's view that the group will sustain its leading status among Hong Kong's telecommunications players while maintaining steady debt leverage.The rating agency does not expect a significant change in the capital structure of Hong Kong Telecommunications and HKT Trust and HKT (HKG:6823), which fully owns the telco through HKT Group Holdings, following the issuance.The company plans to channel the proceeds from the issuance to refinance its debt maturities, the rating agency said.
