Moody's affirms PCCW-HKT

Moody's Investors Service said it affirmed the Baa2 senior unsecured ratings of PCCW-HKT Telephone Ltd. and its supported entities following the announcement that its parent company PCCW Ltd. has agreements to acquire roughly 60% of Sunday Communications Ltd. for HK$1.16 billion.

The agreement includes the purchase of all remaining Sunday Communications stock, the agency said.

The acquisition provides the group with exposure to the Hong Kong cellular market and, given its moderate size, is not expected to present a significant integration risk, Moody's said, noting that the acquisition will have a benign impact on PCCW's credit profile.

The outlook is stable.

The agency said the affirmed ratings include the Baa2 issuer rating.

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