Moody’s trims HK credit rating to ‘Aa2’
HONG KONG: Hong Kong saw its debt rating cut by Moody’s Investors Service hours after China’s downgrade, highlighting potential risks from a tightening economic integration.
Moody’s cut the rating on localand foreign-currency issuances to “Aa2” from “Aa1”, and changed the outlook to stable from negative.
That’s the territory’s first cut in ranking by Moody’s since the throes of the Asian financial crisis in 1998.
“Credit trends in China will continue to have a significant impact on Hong Kong’s credit profile due to close and tightening economic, financial and political linkages with the mainland,” said Moody’s late on Wednesday.
Meanwhile, in Shanghai, the decision by Moody’s to downgrade China’s credit rating to ‘Aa3” from “A1” was “illogical” and overstated the levels of government debt, said Mei Xinyu, a researcher at the Ministry of Commerce in an editorial in the People’s Daily newspaper yesterday. Agencies