1 September 2000
KCRC welcoms upgrade in ratings
The Kowloon-Canton Railway Corporation (KCRC) today welcomed the decision by Moody's Investors Service to upgrade the Corporation's credit ratings to the equivalent of the Hong Kong SAR's sovereign rating ceilings.
The Corporation's short-term foreign currency rating has been upgraded to Prime-1 (the highest possible short-term rating) and its long-term domestic currency rating to Aa3.This is also the first time that Moody's has awarded a double A rating to the Corporation.
In its announcement published on 31 August 2000, Moody's noted that the ratings reflect the ongoing strong support of the government for the KCRC and the inherent credit strengths of the Corporation.
Moody's also commented in a recent credit report on the Corporation that "strong financial performance has been maintained [by KCRC] in recent years despite the significant contraction in Hong Kong's economy and three consecutive years of fare freezes..."
Mr. K. Y. Yeung, Chairman and Chief Executive of KCRC said, "We are delighted with the rating upgrades but I trust it is equally important to note that the financial performance of the Corporation fully justifies the confidence of the rating agencies.