S&P raises Hong Kong ratings to AAA

The ratings company attributes upgrade on improving economic and financial links between Hong Kong and China.

Financial Secretary John Tsang has welcomed Standard & Poor's decision to upgrade Hong Kong's long-term foreign-currency and local-currency ratings to "AAA" from "AA+". It is the highest rating ever assigned to Hong Kong.

S&P attributed the upgrade to Hong Kong's large net external creditor position, the Government's accumulated fiscal reserves, and the above-average growth potential for a high-income economy, according to a Ministry of Finance report.

S&P also noted strong growth on the Mainland, and the deepening economic and financial links between Hong Kong and the Mainland, have boosted Hong Kong's short- and long-term growth prospects.

Mr Tsang said S&P's announcement, together with the recent upgrades of Hong Kong's sovereign ratings by Moody's and Fitch, shows the international recognition of Hong Kong's underlying economic strength and financial resilience.

He said Hong Kong will maintain a close watch over global economic developments and will continue to rise to the challenges ahead.

S&P last upgraded Hong Kong's long-term foreign-currency and local-currency ratings to "AA+" from "AA" in July 2008, with a "stable" outlook.