Moody’s Downgrades China And HK, As Debt Continues To Rise Across Asia

May 25, 2017 update by Rupert on the big moody's china downgrade

It's not just China that's had to cope with a debt downgrade this week, Hong Kong has also seen its credit rating downgraded by ratings agency Moody's.

Shortly after downgrading China, Moody’s Investors Service has downgraded Hong Kong’s local currency and foreign currency issuer ratings to Aa2 from Aa1. The agency also shifted the outlook on the region's debt from stable from negative. Local currency bond and deposit ceilings remain at Aaa.

According to a report from analysts at Credit Suisse, Moody's action to downgrade Hong Kong reflects the view that "erosion in China’s credit profile will continue to have a significant impact on Hong Kong’s credit profile due...