PROPERTY developer Hysan Development has joined the relatively exclusive group of Hong Kong corporates with a credit rating, gaining an A-minus issuer rating from Standard & Poor's (S&P).
S&P said Hysan was one of the territory's leading property companies, and was engaged almost exclusively in operating a portfolio of quality, well-located investment properties in and around the Causeway Bay area.
'Rental income is strong and increasing as a result of high demand for office space in Hong Kong and the growing popularity of Causeway Bay,' the agency said.
'Hysan enjoys excellent relations with its tenants, some of which have equity interests in their buildings.' But it said income from Hong Kong's rental properties was subject to swings and Hysan was potentially vulnerable, with more than half of its space in office leases, and tenants oriented towards the retail outlets for middle and upmarket shoppers.
The company also was competing with several other decentralised locations, had no substantial bank, and was forced to acquire land at market prices, S&P said.
'However, its expansion is gradual and conservatively managed, being partly equity financed,' it said.