Fitch puts WTT Investment on positive watch

Fitch Ratings said it placed on Ratings Watch positive the WTT Investment Ltd.'s long-term foreign- and local-currency issuer default ratings of B+ and the BB- rating with recovery rating of RR2 on its $670 million 5½% senior unsecured notes due 2022.

The negative watch follows news of an all-stock merger between Hong Kong Broadband Network and WTT Holding Corp., WTT's 100% parent, Fitch said.

WTT Holding will become a wholly owned fully consolidated subsidiary of Hong Kong Broadband once the transaction is completed, the agency said.

The positive watch reflects an assessment that the combined entity's strong business-risk profile will offset the company's high pro forma FFO adjusted net leverage of 4.5x to 4.7x in 2020, Fitch said.

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