Daily Management Review

Fitch affirms Hong Kong's rating


Hong Kong's long-term foreign currency Issuer Default Rating (IDR) has been affirmed at "AA-" by international rating agency Fitch Ratings, with a stable outlook.

Mstyslav Chernov
Mstyslav Chernov
Large financial reserves, strong external finance, and a high per capita income strengthen Hong Kong's ratings, according to the agency.

As a result, the agency anticipates the banking sector's profitability to rise this year as the Federal Reserve's (Fed) tightening monetary policy leads to higher local interest rates.

On the other hand, the agency expects this autonomous region's GDP growth to fall to 1% by year's end, down from 6.4 percent last year. Fitch anticipates that the restrictions imposed to combat the covid epidemic will be lifted before the end of April, resulting in a downturn in the economy.

source: fitchratings.com