S&P: PSA on watch

Standard & Poor's said it placed its AAA corporate credit rating on Singapore's PSA Corp. Ltd. on CreditWatch with negative implications.

S&P noted that the CreditWatch placement came after the group's announcement to acquire a 20% stake in each of two port holdings companies: Hutchison Port Holdings Ltd. and Hutchison Ports Investment, both not rated.

The rating on PSA is tied to the credit quality of the overall PSA group, which is held by ultimate holding company, PSA International Pte. Ltd., S&P said

The agency added it believes that the new acquisition is in line with the group's strategy to maintain its global market position. However, should PSA decide to rely significantly on debt to finance the acquisition, its financial profile could be materially weakened in the near to medium term.

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