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The Government today (November 9) welcomed Moody's decision to upgrade Hong Kong's long-term foreign-currency and local-currency rating outlook to "Positive" from "Stable", with ratings at "Aa2".
The upgrade was attributed to the government's financial strength, very low levels of government debt and large fiscal reserves. In addition, Moody's considered that the hypothetical risk emanating from China has lessened, which contributes to a positive rating outlook for Hong Kong.
Moody's also upgraded China's rating outlook to "Positive" from "Stable", with ratings remaining at "A1". Moody's added that, due to increasing integration between Hong Kong and the Mainland, Hong Kong's rating is marginally lower than its intrinsic credit strength.
Welcoming the news, the Financial Secretary, Mr John C Tsang, said the upgrade reflected Moody's recognition of Hong Kong's capability to sail through the global financial crisis smoothly.
"I am pleased to note Moody's recognition of Hong Kong's credit strengths and that the hypothetical risk emanating from the Mainland has lessened. We will continue to impress upon Moody's that the Mainland also presents huge upward potential to Hong Kong through our strong trade and financial links," Mr Tsang said.
The agency last upgraded Hong Kong's long-term foreign-currency and local-currency sovereign ratings to "Aa2" from "Aa3" in July 2007.
Ends/Monday, November 9, 2009
Issued at HKT 19:53
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