Fitch rates Wharf notes A-

Fitch Ratings said it assigned Wharf Finance Ltd.'s proposed dollar-denominated notes an expected rating of A-. The notes are to be unconditionally and irrevocably guaranteed by Wharf (Holdings) Ltd. (A-/stable).

The company proposes to issue the notes with the same terms and conditions and to be fully fungible with the $600 million notes due 2017 issued on Jan. 30.

The agency also assigned the $600 million notes a final A- rating.

Wharf's Issuer Default Rating reflects its stable rental income generation from its quality property portfolio in Hong Kong, its strong liquidity profile as well as moderate industrial and geographical diversification via its exposure to the container terminal and media businesses, the agency said.

Wharf's total adjusted net debt to operating EBITDA was about 3.8x for the first half, up from 3.13x in fiscal 2010.

Credit constraints include exposure to the competitive media and telecom industry and Wharf's expansion into mainland China's property market, the agency said.

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