Fitch rates Wharf notes A-

Fitch Ratings said it assigned an expected rating of A- to Wharf Finance Ltd.'s proposed dollar-denominated notes.

The notes will be unconditionally and irrevocably guaranteed by the Wharf (Holdings) Ltd., Fitch said.

The notes are rated at the same level as Wharf's senior unsecured rating as they represent direct, unconditional, unsecured and unsubordinated obligations of the company, the agency said.

The proposed notes are to be issued as part of Wharf's $5 billion medium-term note program, which has an A- rating.

Wharf is the market leader in retail leasing in Hong Kong with its tenants commanding a nearly 10% share of Hong Kong's retail sales, Fitch said.

Wharf is experienced at upgrading its malls with continued asset enhancement, tenant repositioning and promotional activities, the agency said.

The company is one of the most active Hong Kong firms investing in the China property space, Fitch said. It has a long-term target of increasing its China assets to 50% of the firm's assets, the agency said. But, Fitch said it believes this investment strategy increases its risk profile and remains a major ratings constraint.

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