Hutchison retains Fitch’s A-rating

Fitch Ratings has affirmed the Long-Term Issuer Default Rating (IDR) at 'A-' with a Stable Outlook, and its Short-Term IDR at 'F2' of Hutchison Whampoa Ltd.

Fitch has also affirmed Hutchison's foreign currency senior unsecured rating at 'A-', and the US$2 billion and US$1 billion hybrid capital notes, guaranteed by Hutchison, at 'BBB'.

Fitch said the affirmations reflect Hutchison's geographical and industry diversification, high cash balance, a well-spread debt maturity profile and its solid access to diverse sources of capital. The ratings also reflect the company's stable cash flow generation from its core businesses such as ports and properties, and the continued improvement of its retail division.

Hutchison's strong liquidity profile is supported by cash and liquid balances of HK$116.5 billion and committed undrawn credit limits of HK$6.03 billion this June. Its consolidated cash and liquid balance in June was sufficient to repay all outstanding debt maturing through to 2014

Offsetting these advantages are Hutchison's heavy capex and cash drain from its 3G business that turned EBIT-positive only in 2010.

Hutchison is one of the largest companies listed on the Hong Kong Stock Exchange. It is an international corporation with a diverse array of holdings that includes the world's largest port and telecommunication operations in 14 countries. Its business also includes retail, property development and infrastructure. It is 49.97% owned by the Cheung Kong Group.