PCW - Pacific Century CyberWorks Limited Message Board

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Technology Stocks : PCW - Pacific Century CyberWorks Limited

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To: ms.smartest.person who wrote (1595)	7/12/2001 11:14:46 AM
From: ms.smartest.person	Read Replies (1) of 2248

Moody's Rates PCCW-HKT Notes Baa1 Senior Unsecured; Outlook Stable Jul 12, 2001 - 12:53:15 HKT Quamnet News Service Moody's Investors Service said it assigned a Baa1 senior unsecured rating to the proposed US$2.5 billion notes issue of PCCW-HKT Capital Ltd., guaranteed by PCCW-HKT Telephone Ltd. (HKT). The rating outlook is stable. The securities are being sold in privately negotiated transactions pursuant to Rule 144A and Regulation S, without registration under the United States of America's Securities Act of 1933. Moody's says the rating reflects HKT's: leading market position with a strong brand and high customer loyalty; ubiquitous and modern network; experienced management; and commitment by its parent Pacific Century Cyberworks (0008) to maintain the company's adequate financial profile. The rating also reflects PCCW management's stated strategy to consolidate the group around the strengths of HKT, with no plans to materially expand the scope or scale of the business. The rating also considers risks associated with PCCW, given its short credit history and recent large acquisition. HKT may be required to support the PCCW Group's capital needs over and above that company's existing reserves. Moody's notes that HKT has the potential to leverage off product offerings developed by PCCW while combining certain overlapping functions. PCCW has a number of start up investments that are currently cash negative and over US$1.8 billion in convertible notes liabilities maturing in 2005 and 2007. PCCW has established joint ventures with Telstra Corp., namely Reach Ltd. and Regional Wireless Company, both of which are intended to be self-funding, but may require additional capital to fund growth. Moody's adds that PCCW has a degree of flexibility to fund its activities, provide capital, and refinance or repay its convertible notes given its cash reserves and asset base. The rating outlook for the notes is stable reflecting HKT's strong and predictable cash flows, the rating agency said.

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