URA Welcomes S&P’s Decision to Affirm URA’s Rating at “AA+”

The Urban Renewal Authority (URA) welcomes Standard & Poor’s (S&P’s) decision to affirm the URA’s long-term issuer credit and senior unsecured notes rating of “AA+”, and raised the “Likelihood of Extraordinary Government Support” from “Extremely High” to “Almost Certain”, with “Stable” outlook.

S&P has upgraded the “Likelihood of Extraordinary Government Support” for the URA in recognition of its irreplaceable role as a key contributor to the city’s urban renewal, which is reflected by the volume of additional tasks assigned by the Government in recent years to the URA including the commissioning of large-scale district studies for Shum Shui Po and Tsuen Wan to tackle urban decay.  In addition, as mentioned in the 2023 Policy Address, significant resources will be allocated to enhance the efficiency of urban renewal and to support the work of the URA, which is another factor of consideration.

The Managing Director of the URA, Ir Wai Chi-sing welcomes S&P’s decision and anticipates positive impact being brought on the URA’s ability to access external sources of financing.

“We are glad to see that S&P recognises the pressing challenges of urban decay in Hong Kong and the significant role of the URA in solving the problem.

Over the past few years, the URA has taken up an increasing share of urban renewal work, with the acquisition process of several large redevelopment projects set to commence in the near future. While the URA is determined to utilise all available resources to take forward urban renewal work, it is not feasible for the URA to tackle the problem on its own.  The URA will continue to work with the Government in exploring innovative solutions to motivate participation from the private sector in urban renewal, thereby creating a more sustainable and liveable city for the betterment of present and future generations,” Ir Wai said.

(ENDS)