S&P Global Ratings affirmed Swire Properties Ltd.'s A- long-term corporate credit rating with a negative outlook.
The rating agency subsequently withdrew the rating at the request of Swire Properties.
In affirming the rating, S&P considered the company's strong market position in Hong Kong's grade A commercial property market, with its established brand name and good asset quality across a well-diversified portfolio of retail, office and hotel properties in Hong Kong, China and the U.S. These assets are expected to continue to generate robust and stable income for the company.
High capital expenditure and declining income from residential property trading will likely weaken the company's financial ratios in the next two years, however capital spending is expected to gradually decrease starting in 2018 following the completion of the One Taikoo Place project in Hong Kong and the mixed-use HKRI Taikoo Hui complex in Shanghai.
The negative outlook reflects S&P's similar outlook on Swire Pacific Ltd., with the agency noting that Swire Properties is a core member of the Pacific group, and any deterioration in the group credit profile could weaken the business and financial position of the property unit.
S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.