S&P: HKT Group on watch

Standard & Poor's said it placed the BBB long-term corporate credit rating on Hong Kong Telecommunications (HKT) Ltd. on CreditWatch with negative implications.

The agency also said it placed the BBB rating on all of the outstanding notes that HKT Group Holdings Ltd. and Hong Kong Telecommunications guarantee on CreditWatch with negative implications.

The negative watch follows the release of the 2010 financial results, which highlighted that the group has made less progress than expected at deleveraging its balance sheet, S&P said.

The agency said it now sees a high likelihood that the group will breach the downgrade triggers set for mid-2011.

While its core businesses performed in line with expectations in 2010, debt levels remained high for the current rating, S&P said.

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