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Hutchison 3G Go To A-Minus

18th November, 2003

ASIA : Fitch Ratings, the international rating agency, has today assigned a rating of 'A-' (A-minus) to the proposed guaranteed notes to be issued by Hutchison Whampoa International (03/33) Limited. The notes will be irrevocably and unconditionally guaranteed by Hutchison Whampoa Ltd ("Hutchison").

Fitch assigned a Senior Unsecured foreign currency rating of 'A-' (A-minus) to Hutchison in August. The rating Outlook is Negative, reflecting the agency's cautiousness over the medium-term outlook for 3G revenue growth and the cost of future growth.

"The proposed issue should lengthen Hutchison's debt maturity profile and ease its overall refinancing pressure as the 3G business approaches the peak funding stage," says Elizabeth Allen, Associate Director of Fitch. The agency believes that while future capital costs can be effectively managed, there are uncertainties about the magnitude of operating losses to be incurred in the initial two to three years of 3G services.

Fitch published a full report on Hutchison on 5 November, 2003. The report is available on the agency's subscription website.

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