THE first official debt rating to go to a major Hong Kong listed company has been won by Wharf Holdings. Yesterday top United States rating agency Standard & Poors announced that it had awarded the conglomerate a straight ''A'' for its debt.
This is likely to be the first of a string of new ratings for local companies. Swire Pacific and Sun Hung Kai Properties are also said to be seeking to have their debt rated. Wharf is also expected to be rated by Moody's, the other leading agency.
The S&P stamp of approval on a company opens up the possibilities of tapping the international debt market at advantageous rates, although Wharf director Edward Cheng said yesterday there were no immediate plans to start borrowing money.
The instability in the bond market caused by the recent raising of interest rates by the Federal Bank in the US would continue for another month or two, he predicted.
However, he added that the rating now offered the chance to consider arranging long-term finance, perhaps for as long as 20 years. ''You can assume that we will be actively seeking opportunities. When conditions are right, we will consider doing some form of fund-raising exercise,'' Mr Cheng said.
The Wharf grading will be seen as another step in the build-up of the Hong Kong debt market, which is still tiny compared to the traditional equity business in the territory. A growing number of Hong Kong companies with official ratings will encourage trading of the debt onshore, rather than losing the business to other markets.
With Wharf's assets heavily weighted to property, and speculation growing about the future direction of prices, the A rating will be seen as a welcome measure of confidence in the entire sector.