Moody's affirms PCCW-HKT Telephone

Moody's Investors Service said it affirmed the Baa2 senior unsecured ratings of PCCW-HKT Telephone Ltd. and its supported entities.

The outlook remains positive.

The affirmation is in response to news that PCCW Ltd., parent of HKT, plans on acquiring the remaining 38.47% stake in Pacific Century Premium Developments Ltd. that it does not own at a cost of HK$2.64 billion. The acquisition will be funded by drawing on existing committed revolving facilities, Moody's said.

The increased debt burden at the consolidated level will place only minor downward pressure on the company's financial metrics - the projected net debt-to-EBITDA ratio of about 3x post acquisition remains consistent with the current rating level, the agency said.

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