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To: bananawind who wrote (33198)	6/25/1999 10:52:00 AM
From: Ruffian	Respond to of 152472

Moodys Reasoning> June 25, 1999 Dow Jones Newswires Moody's Affirms HK Hutchison Whampoa A3 Foreign Rtg HONG KONG -- Moody's Investors Service Inc. said Friday it has confirmed its A3 long-term foreign currency rating on Hutchison Whampoa Ltd. (H.HUW), but changed the outlook on the rating to negative from stable. The ratings agency said the change in outlook was due to the Hong Kong conglomerate's plan to invest US$957 million in VoiceStream Wireless Corp. to support the U.S. mobile phone operators' merger with Omnipoint Corp. Both VSTR and Omnipoint, rated B-3 by Moody's, are GSM telecommunication operators in the U.S. Moody's said the rating outlook was changed to negative from stable, reflecting the potential impact of the business risks associated with the investment - which is considered a relatively riskier asset than others in Hutchison's portfolio - on several factors. These include the impacts on Hutchison's business profile and the uncertainty of potential further equity contribution required from Hutchison to support further the merged entity's medium-term business development, said Moody's. Moody's noted the increased risks of investing in the GSM technology in the highly competitve industry in the U.S., which is dominated by the so-called CDMA technology. However, further equity contribution from Hutchison, in addition to the US$957 million, could be called upon for future network development, Moody's said.