Urban Renewal Authority

The stable outlook on URA reflects the rating outlook on the HKSAR, given our expectation of an extremely high likelihood of government support for the authority if needed. The rating on URA will move in tandem with that on the HKSAR. The outlook also reflects our expectation that URA will maintain conservative financial management and a strong financial position with low debt leverage as it continues to spend on redevelopment projects. We may lower the rating on URA if we downgrade the HKSAR or we reassess the likelihood of extraordinary government support stemming from any weakening in operational and financial support from the HKSAR government. We may also downgrade URA if we assess that its 'aa-' stand-alone credit profile (SACP)

...URA's policy role could gradually strengthen in the medium term. The Urban Renewal Authority's (URA) role is expanding amid broader initiatives to alleviate housing shortages by the government of Hong Kong Special Administrative Region (HKSAR; ##+/Stable/A-1+). The government's policy address in October, 2019, unveiled plans for the URA to provide more starter homes following the success of a pilot project, eResidence. In addition, the URA could commence pilot redevelopment projects under the Civil Servants' Co-operative Building Society (CBS) Scheme and expand the number of projects in the planning reserve coming out from the Yau Mong District Study (YDMS) over the next 12 to 24 months. In order to accomplish these large-scale initiatives, we believe URA will receive stronger government support as and when needed. Government is likely to offer necessary support for the URA's increased financial burden. We believe URA may require heavier capital spending to carry out new housing initiatives....

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