Rating agency Fitch Ratings downgraded Cheung Kong (00014.HK)'s long-term foreign currency issuer default rating from 'BBB+' to 'BBB', with a stable outlook. Fitch also downgraded Cheung Kong's senior unsecured rating, the rating of the $4 billion medium-term note program issued by Cheung Kong (MTN) Limited, and the ratings of the outstanding bonds under the note program from 'BBB+' to 'BBB'.

This rating downgrade is based on Fitch's expectation that Cheung Kong's interest coverage ratios will continue to be under pressure during 2024 to 2026 due to ongoing challenges in office rent and a weakened outlook for retail properties. In addition, the pace of decline in market interest rates has been slower than Fitch's expectations. Fitch believes that Cheung Kong's resilient property portfolio in Causeway Bay outperforms the overall performance of the Hong Kong office and retail leasing market, which will continue to support Cheung Kong's ratings.