************************************************************
The Government today (October 8) welcomed Moody's decision to put Hong Kong's "Aa2" government bond ratings on review for possible upgrade.
The review for upgrade was attributed to the Government's continued and improving financial strength; the lessening vulnerability of Hong Kong to external shocks, as demonstrated by the continued health of the financial sector and the increase in external financial assets; and the favourable prospects for China's economic performance in the coming years, which will provide support to economic growth and financial developments in Hong Kong. Moody's also placed China's "A1" government bond ratings on review for possible upgrade.
The Financial Secretary, Mr John C Tsang, welcomed the review for upgrade of Hong Kong's ratings. "Moody's decision to put Hong Kong's ratings on review for upgrade demonstrates the agency's recognition of Hong Kong's remarkable resilience during the global financial crisis. We will continue to rise to the challenges ahead," Mr Tsang said.
In November 2009, Moody's upgraded Hong Kong's long-term foreign-currency and local-currency sovereign ratings outlook to "Positive" from "Stable", with ratings at "Aa2".
Ends/Friday, October 8, 2010
Issued at HKT 20:47
NNNN