NEW YORK-A subsidiary of Hong Kong-based Hutchison Whampoa Ltd., which holds a
minority stake in both Orange plc and Western Wireless Corp., plans to issue $547 million in Euro-denominated bonds
due 2006 and about $194 million in Hong Kong dollar-denominated notes due 2002.
Hutchison has a “strong
market position in five well-managed core segments,” including telecommunications, according to Standard &
Poor’s Corp., which assigned an investment grade rating of A to the proposed debt issues of Hutchison Whampoa
Finance Ltd.
“At the same time, the company maintains sizable overseas assets, which contribute about 20
percent of group earnings before interest and taxes and provide a degree of geographic diversification,” said
Stella Shao, a Hong Kong-based analyst for S&P.
Most of its assets outside Hong Kong are in China and the United
Kingdom, according to Moody’s Investors Service Inc., which accorded the proposed debt issues an investment grade
rating of A3.
“These operating strengths give the company sufficient room to continue expanding into
telecommunications and other competitive industries that can entail start-up losses.”
