The rating on Kowloon Canton Railway Corp. (KCRC) reflects the "almost certain" likelihood that the government of the Hong Kong (Special Administrative Region) (HKSAR; AAA/Stable/A-1+; cnAAA/cnA-1+) would provide timely and sufficient extraordinary support to KCRC in events of financial distress. As a result, the long-term corporate credit rating is equalized with the long-term issuer rating on Hong Kong. The rating on KCRC, one of the two owners of railway infrastructure in Hong Kong, also reflects the company's status as an asset-holding company with minimal operational risk. KCRC granted MTR Corp. Ltd. (MTRC; AAA/Stable/A-1+; cnAAA/cnA-1+) a service concession to operate the KCRC railway network on Dec. 2, 2007. It will receive stable annual fixed and variable payments from MTRC. KCRC's weak...
Companies mentioned in this report are: Kowloon Canton Railway Corp.
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