Moody's Downgraded Hong Kong's Rating
Moody’s cut Hong Kong’s local and foreign currency ratings to Aa2 from Aa1 rating following it downgraded its rating on China amid concerns over the country’s rising debt problems.
The rating agency said the downgrade in Hong Kong’s rating reflects "Moody’s view that 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".
The rating agency research also pointed out the Hong Kong banking sector's exposure to mainland China increased further in the second half of last year. Total mainland-related lending rose to HKD3.6 trillion at the end of 2016, up 3.5% compared with last June, other non-bank exposures also increased by 11.4% to HKD1.2 trillion.
- APMR News