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.

Moody's said the affirmation follows the announcement that China Network Communications Group will subscribe for 20% of an enlarged issued share capital by PCCW Ltd., amounting to around $1 billion.

Moody's said it believes the equity injection, while mildly positive, is not sufficient to justify a change in PCCW-HKT's rating.

The bulk of the proceeds will be invested in new opportunities in China and the cash flow return for such is unknown. The outlook remains stable.

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