The financial hub’s long-term issuer credit rating was lowered to AA+ from AAA, S&P said in a statement Friday. The agency lowered China’s sovereign rating Thursday to A+ from AA-, citing the risks from soaring debt, and revised its outlook to stable from negative.
Bulgaria Air starts operating 10 new regular passenger flights to some of the most attractive cities in Europe and…20 Views | the publication reaches you by | Bulgarian Business Club
S&P said in a statement, referring to the Hong Kong special administrative region.
It’s the second time this year Hong Kong’s rating has been cut in response to a China downgrade. Moody’s Investors Service in May lowered the finance hub’s rating and changed the outlook to stable from negative after it cut China for the first time since 1989.
“Downgrading Hong Kong after China is a natural step,” said Mark McFarland, chief Asia economist at Union Bancaire Privee. “It has been widely anticipated that S&P would eventually follow the others and that Hong Kong would be dropped a notch too.”
Analysts remain concerned with China’s swelling debt. Total borrowing climbed to about 260 per cent of the economy’s size by the end of 2016, up from 162 per cent in 2008, according to Bloomberg Intelligence estimates.
S&P’s China downgrade represents waning confidence that Beijing can strike a balance between maintaining economic growth and cleaning up its financial sector. The move may also be uncomfortable for Communist Party officials, who are just weeks away from their twice-a-decade leadership reshuffle.
The Bulgarian economy shrunk by 4.6 percent last year, and in 2021 the country expects a recovery and…23 Views | the publication reaches you by | Bulgarian Business Club
Do you have information you want to reach our readers?