Moody’s: Hong Kong Mortgage to negative

Moody's Investors Service said it affirmed Hong Kong Mortgage Corp. Ltd.'s long-term senior unsecured and issuer rating at Aa1, senior unsecured medium-term note program ratings at provisional Aa1, short-term issuer ratings at P-1 and other short-term ratings at provisional P-1.

The outlook on the senior unsecured debt and issuer ratings was revised to negative from stable.

Moody’s said the change in outlook follows the recent the March 12 announcement to revise the Hong Kong government's Aa1 rating outlook to negative from stable.

Hong Kong Mortgage Corp.’s long-term ratings are aligned with those of the Hong Kong government given the former's government ownership and public policy mandates, broad representation of government officials and legislators on its board of directors and ongoing and expected extraordinary government support during times of stress.

Given the negative outlook on the company's ratings, its ratings are unlikely to be upgraded in the near term. The ratings could be revised back to stable if the government's ratings outlook is revised to stable, the agency said.

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