Moody's upgrades WTT

Moody's Investors Service said it upgraded the corporate family rating of WTT HK Ltd. to Ba3 from B1, along with the rating on the senior unsecured notes issued by WTT Investment Ltd. that are guaranteed by WTT HK.

The outlook is positive.

The upgrades follow the recent completion of a merger between WTT and HKBN Ltd., Moody's said.

The upgrade primarily reflects the incorporation of a one-notch rating uplift based on the increased likelihood of extraordinary support from HKBN, given HKBN's stronger credit quality and the expectation that WTT will become a core part of HKBN group, the agency said.

The ratings also consider WTT's high strategic importance to HKBN's operations as the former will significantly strengthen the latter's core enterprise fixed-line business, enabling it to achieve greater economies of scale and cost savings, Moody's said.

WTT's credit quality remains constrained by its geographic concentration in Hong Kong, the agency said, and its modest scale when compared to global telecommunications peers.

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