Hong Kong rejects negative credit outlook rating

Moody's downgraded Hong Kong’s outlook rating from stable to negative.

Hong Kong disagreed with Moody's Investors Service's credit outlook for the city.

Moody's changed Hong Kong’s credit outlook from stable to negative, citing the city's “tight linkage of credit profiles with China” and the “potential spillovers from the developments” in China.

The government, however, pointed out that Hong Kong’s economic and financial ties with China should not be a rating constraint but a positive driver for Hong Kong’s economic growth.

It also noted that China has immense development resilience and potential, and its long-term prospects remained unchanged.