Hong Kong Becomes Collateral Damage After Moody's China Cut
- Territory hits back against a ‘mechanically’ driven downgrade
- Asset quality is high but China risk rising, Moody’s says
Why Dagong Global Maintains China's AA+ Rating
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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.
The former British colony has seen not only its property and stock markets increasingly entwined with the world’s second-largest economy, but its government as well. Moody’s cut the rating on local- and foreign-currency issuances to Aa2 from Aa1, and changed the outlook to stable from negative.