Moody’s trims HK credit rat­ing to ‘Aa2’

New Straits Times - - Business -

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

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