Moody's Ratings Recognize HK's Economic Autonomy

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Last updated at: (Beijing Time) Wednesday, May 15, 2002

Moody's Ratings Recognize HK's Economic Autonomy

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Moody's Investors Service said Tuesday that the Hong Kong Special Administrative Region (SAR) government enjoys autonomy in economic and financial matters since the region's return to the motherland in 1997.

In Moody's newly released annual Global Credit Research Report, the SAR government was assigned A3 foreign currency ceilings and Aa3 domestic currency issuer rating.

Moody's report said Hong Kong's international financial position is strong, with a high level of international reserves supporting the HK dollar's peg to the U.S. dollar.

Over the longer term, Hong Kong's competitiveness as a regional financial and service center and a channel for Chinese trade will be important factors in the ratings, it said.

The report also said that Hong Kong's deficit is not a problem, adding that the SAR government is debt-free and holds one of the largest fiscal reserves in the world, equivalent to about 19 months of expenditure.

Asked by media to comment on Moody's ratings, Financial Secretary Antony Leung said again that the SAR Government is determined to resolve the deficit problem.

"I have stated a very clear goal that by 2006-07, we will achieve fiscal balance in both the consolidated and operating accounts," Leung said.

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