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MTR Corp. Pays Heavy Price for Unrest in HK Amid Lack of Insurance Coverage

Published 10/20/2019, 11:25 PM
Updated 10/20/2019, 11:26 PM
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Investing.com - MTR Corp Ltd (HK:0066), Hong Kong’s subway operator, will probably have to pay for the bill for damages suffered over the past four months during the city’s political unrest.

Credit-rating firm Moody’s Investors Service said in a report that the operator may not be fully covered by its insurance and that its credit profile has likely taken a hit as a result.

MTR is accused by anti-government protesters of being in lockstep with the government and police and has seen its stations vandalized and its corporate image tarnished. More than half of the railway stations were severely damaged and their services suspended during violent protests on Sunday.

Over the weekend, police and protesters exchanged volley of tear gas and petrol bombs while multiple Chinese banks and shops deemed to be pro-Beijing were wrecked.

It was estimated back in early September that MTR has suffered damages of HK$50 million.

Share prices of the company last traded at HK$44.10 by 11:18 PM ET (03:18 GMT), falling by about 10% since Hong Kong’s unrest began in early June.

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