MTR Corporation Limited (Initial Issuer Report)

Lianhe Global has assigned ‘AA+’ global scale Long-term Issuer Credit Rating with Stable Outlook to MTR Corporation Limited (“MTRC” or “the company”)

The Issuer Credit Rating reflects MTRC’s dominant market position in Hong Kong’s mass transit rail sector, and revenue recovery supported by established network, strong market demand, diversified revenue streams and high operating efficiency. Moreover, there is a high possibility that the Government of the Hong Kong Special Administrative Region (“Hong Kong government”) would provide very strong support to MTRC if needed, in light of its majority ownership, MTRC’s strategic importance in the public transportation system, and the linkage between the Hong Kong government and MTRC, including appointment of directors in MTRC’s board of directors (“BOD”), strategic alignment, major investment and financing plan decisions and ongoing government support. In addition, the Hong Kong government may face significant negative impact on its reputation and financing activities if MTRC encounters any operational and financial difficulties.

The Stable Outlook reflects our expectation that MTRC will maintain its market position and strategic importance, while the Hong Kong government will continue to ensure MTRC’s stable operation.