The Hong Kong Special Administrative Region Government (HKSARG) welcomed Standard & Poor’s (S&P’s) December 16 decision to upgrade Hong Kong’s long-term foreign-currency and local-currency ratings to “AAA” from “AA+,” with a “stable” outlook.

S&P attributed the upgrade to Hong Kong’s large net external creditor position, the HKSARG’s accumulated fiscal reserves, and the above-average growth potential for a high-income economy. S&P also noted that strong growth in mainland China, and the deepening economic and financial links between Hong Kong and the Mainland, have boosted Hong Kong’s short- and long-term growth prospects.

Hong Kong Financial Secretary John C. Tsang welcomed S&P’s upgrade of Hong Kong’s sovereign ratings to “AAA,” the highest rating ever assigned to Hong Kong.

“S&P’s announcement, together with the recent upgrades of Hong Kong’s sovereign ratings by Moody’s and Fitch, is clear evidence of the international recognition of Hong Kong’s underlying economic strength and financial resilience,” Mr. Tsang said. “We will maintain a close watch over global economic developments and will continue to rise to the challenges ahead.”

S&P last upgraded Hong Kong's long-term foreign-currency and local-currency ratings to “AA+” from “AA” in July 2008, with a “stable” outlook.