The Hong Kong Special Administrative Region Government welcomed Standard & Poor’s (S&P’s) decision to upgrade Hong Kong’s long-term foreign- and local-currency sovereign ratings to “AA+” from “AA”, with “Stable” outlook.

S&P attributed the upgrade to further improvement in the credit strengths of the Mainland and the maintenance of the Hong Kong Government’s healthy fiscal performance. Hong Kong’s very strong economic and financial attributes also supported its credit rating. The agency expected Hong Kong’s flexible economy and sound banking sector to maintain economic growth trend at 5%.

The agency also noted that Hong Kong’s large net external asset position provided protection from any liquidity risks associated with volatile financial flows, and that the forecast cyclical slowdown of real GDP growth would not affect Hong Kong’s long-term prospects.

Welcoming the news, Hong Kong Financial Secretary, Mr. John Tsang, said that the upgrade reflected international recognition of Hong Kong’s strong economic fundamentals and sound policies. These credit qualities enabled Hong Kong to benefit from growth and developments in Asia and particularly on the Mainland.

“The upgrade is a manifestation of Hong Kong’s economic resilience amidst global uncertainty,” Mr. Tsang said. “On the fiscal front, the Government will continue to strengthen Hong Kong’s public finances with our usual prudence and discipline.”