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Moody's decision to upgrade Hong Kong's foreign-currency and local-currency sovereign ratings welcomed
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    The Government today (July 26) welcomed Moody's decision to upgrade Hong Kong's long-term foreign-currency and local-currency sovereign ratings to "Aa2" from "Aa3", with "Stable" outlook.

     Moody's attributed the decision to a strengthening of Hong Kong government finances and its external position. This strong position gives the government considerable financial flexibility and provides a strong buffer against potential shocks emanating from the Mainland or elsewhere.

     Welcoming the news, the Financial Secretary, Mr John C Tsang, said the upgrade reflected international recognition of Hong Kong's strong economic fundamentals.

     "Hong Kong has now achieved AA ratings for its foreign-currency and local-currency obligations by all major international credit rating agencies, the highest that has ever been assigned to Hong Kong," Mr Tsang said.

     "I am pleased to note Moody's recognition that Hong Kong's economic and financial resilience to unforeseen external developments has grown over the past several years. Our robust systems as well as large and growing fiscal reserves and international asset position will continue to provide buffer to Hong Kong to withstand potential external shocks. We are also confident that Hong Kong's economy would continue to benefit substantially from the trade and financial links with the Mainland," Mr Tsang added.

     Moody's put Hong Kong's long-term foreign-currency and local-currency sovereign ratings on review for possible upgrade in May this year. The agency last upgraded Hong Kong's long-term foreign-currency sovereign rating to "Aa3" from "A1", with "Positive" outlook, in September 2006.

Ends/Thursday, July 26, 2007
Issued at HKT 13:23

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