Fitch upgrades Wharf

Fitch Ratings said it upgraded the Wharf (Holdings) Ltd.'s long-term issuer default rating and senior unsecured rating to BBB+ from BBB.

“The upgrade reflects WHL's prudent financial management. The company has reduced its leverage since 2021 and managed its interest coverage effectively despite a high and rising interest rate environment. Fitch expects WHL's investment-property (IP) rental EBITDA coverage to remain at or above 2.6x, supported by the high and stable occupancy rates of its flagship retail properties in Chengdu and Changsha amid the country's slowing growth momentum,” the agency said in a statement.

Additionally, Fitch noted, “The majority of WHL's borrowings are floating-rate, while onshore China assets are substantial and have increased the proportion of onshore yuan debt to 40% by end-June 2023 from about 30% in 2022, which has helped to manage funding costs.”

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.