HK's Credit Ratings Upgraded
Hong Kong's Financial Secretary John Tsang has this week welcomed Standard
& Poor's decision to upgrade Hong Kong's long-term foreign- and local-currency
sovereign ratings to "AA+" from "AA", with a "stable"
outlook. Mr Tsang said the decision reflects international recognition of the city's
strong economic fundamentals and sound policies. The credit agency attributed the upgrade to further improvement in the Mainland's
credit strengths, the Hong Kong Government's maintenance of healthy fiscal performance
- and the city's strong economic and financial attributes. It expected Hong Kong's flexible economy and sound banking sector to maintain
a 5% economic growth trend. It said the city's large net external asset position
protects it from liquidity risks from volatile financial flows. A forecast cyclical slowdown of real GDP growth will not affect its long-term
prospects, the agency added. Mr Tsang said the credit qualities enable Hong Kong to benefit from growth
and developments in Asia, particularly on the Mainland. "The upgrade is a manifestation of Hong Kong's economic resilience amid
global uncertainty. On the fiscal front, the Government will continue to strengthen
Hong Kong's public finances with our usual prudence and discipline," he
said. .
|
|
IMPORTANT NOTICE: THE LOWTAX NETWORK has taken reasonable care in sourcing and presenting the information contained on this site, but accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, users of the site are advised to take appropriate professional advice before committing themselves to involvement in offshore jurisdictions, offshore trusts or offshore investments. All materials on this site copyright THE LOWTAX NETWORK 1999 to 2009. Contact us for further information.