Tear Sheet: Urban Renewal Authority

We see an almost certain likelihood of extraordinary support from the Hong Kong government to Urban Renewal Authority (URA). The chief executive?s 2024 policy address stated the government will expedite urban redevelopment and further improve building safety. URA is the only statutory body in Hong Kong responsible for urban renewal. Up until March end 2024, the authority received HK$25.3 billion of land premium waivers. Developers are holding back on tenders for URA?s projects as the market is still digesting the existing property supply. The tender for the Kai Tak Road / Sa Po road development scheme was not awarded after it received only one submission in September 2024. URA may consider developing projects on its own to ensure the city's

...Rating Component Scores Foreign currency issuer credit rating ##+/Stable/-- Local currency issuer credit rating ##+/Stable/-- Business risk Strong Country risk Low Industry risk Moderately High Competitive position Excellent Financial risk Minimal Cash flow/leverage Minimal Anchor ##- Diversification/portfolio effect Neutral (no impact) Capital structure Neutral (no impact) Financial policy Neutral (no impact) Liquidity Strong (no impact) Management and governance Positive (no impact) Comparable rating analysis Neutral (no impact) Stand-alone credit profile ##- Related government rating ##+ Likelihood of government support Almost certain (+2 notches)...

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