Hopewell Holdings 'BB-' long term rating affirmed; outlook negative: S&P

HONG KONG (AFX-ASIA) - Standard & Poor's said it has affirmed the long term "BB-" corporate credit rating on Hopewell Holdings Ltd.The outlook on the rating is negative, it said.Meanwhile, the credit rating agency has also affirmed the "BB-" rating on the 600 mln usd unsecured senior notes due 2004 and 2007, issued by Guangzhou-Shenzhen Superhighway Holdings Ltd, a joint venture between Hopewell and the Guangdong government.The ratings reflected the weak cashflow generation of Hopewell Holdings, S&P said.It said the weak cash flow from property holdings and interest in Guangdong province kept Hopewell's cash flow interest coverage below 1.0 times in fiscal 2000.S&P said Hopewell is highly exposed to the Chinese transportation market, and its financial performance will be depressed, if traffic growth is weaker-than-anticipated.The agency said Hopewell's liquidity position is thin, given its weak operating performance and the fact that the majority of the company's major assets are pledged as security against outstanding loans.However, it said the solid prospect for road investment and its active financial management will help alleviate some pressure from the above risks.It said Hopewell is also adopting a modest operating strategy and a careful dividend policy.

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