Fitch Ratings has maintained Hong Kong’s “AA-” credit rating and “stable” outlook, which the government has said is a reflection of the city’s strong financial position.
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A government spokesman said on Friday that the unchanged rating and outlook recognised the city’s “large fiscal buffers, robust external finances and a low level of fiscal debt”, as well as the banking sector’s solid funding and liquidity.
Earlier in the day, Fitch issued a report that highlighted the positive fundamentals while also noting the city’s balance sheet continued to worsen.
“The deterioration does not cause imminent pressure on the credit profile, but fiscal risks are tilted to the downside over the medium term,” the American credit ratings agency said.
The “AA-” rating means very high credit quality and very low credit risk. It is three notches from the “AAA” ceiling.
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Fitch predicted Hong Kong’s gross domestic product (GDP) would grow by 2.2 per cent this year compared with 2024, before posting another 2.5 per cent increase in 2026.