Property-related income essential for GREs’ services: report

The reports forecasts the Urban Renewal Authority would receive extraordinary support.

Property-related income will continue to be essential to public and government-related entities (GREs) and their ability to carry out essential public services, according to an S&P Global Ratings report.

"Even as the property-related income of some GREs has weakened amidst a property downturn, these companies still have to manage sizable capital expenditure and new investments; many will turn to external funding," said S&P Global Ratings credit analyst Ricky Tsang.

Amongst these entities, the Urban Renewal Authority and MTR Corporation Limited would receive extraordinary support from the government in a stress scenario.

"We believe the government will provide timely support to its GREs in the case of financial stress. It will likely vary, depending on the importance of each entity to the government," said Tsang.