S&P rates Henderson Land converts A-

Standard & Poor's said it assigned its A- rating to Henderson Land Development Co. Ltd.'s recent HK$5.75 billion convertible note issue.

The notes were issued by Henson International Finance Ltd., a wholly owned subsidiary of Henderson Land. The notes, due 2006, are guaranteed and can be converted into Henderson Land shares.

The company said that the proceeds would be used to participate in government land auctions, and for property development and general working capital purposes. At the same time S&P assigned its A- corporate credit rating to Henderson Land.

The outlook is stable.

S&P said the rating on Henderson Land reflects the strong recurrent income from Towngas and its property investment operation, its leading position in the property development market in Hong Kong, adequate cash flow protection measures, and strong financial flexibility. These strengths are mitigated by Hong Kong and mainland China's highly competitive and cyclical property market conditions.

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