S&P affirms MTR

S&P said it affirmed its AA+ long-term and A-1+ short-term issuer credit ratings on MTR Corp. Ltd.

The outlook is stable.

The agency also affirmed the AA+ long-term issue rating on all outstanding notes that MTR issued and guarantees.

“We affirmed the ratings on MTRC because we continue to assess the likelihood of the company receiving extraordinary support from the Hong Kong government as almost certain should the company come under financial distress,” S&P said in a news release.

“In our view, MTRC has sound business fundamentals and robust cash flow from its recurrent business. This may at least partially absorb the potential financial impact caused by the construction scandal associated with the Shatin-Central Line (SCL).

“The scandal and the resultant management turmoil do not change our view of MTRC's integral link and critical role to the government.”

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