S&P strips Hong Kong of AAA rating after China downgrade

SINGAPORE (Sept 22): S&P Global Ratings cut Hong Kong’s credit rating a day after it downgraded China for the first time since 1999, a move that reflects the "strong institutional and political linkages" between the special administrative region and the mainland, the ratings firm said.

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.

"We are lowering the rating on Hong Kong to reflect potential spillover risks to the SAR should deleveraging in China prove to be more disruptive than we currently expect," S&P said in a statement, referring to the Hong Kong special administrative region.

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