Standard & Poor's confirms Hong Kong's "AA+/A-1+" credit rating with a stable long-term outlook.

The rating agency Standard & Poor's has confirmed Hong Kong's "AA+/A-1+" long-term and short-term issuer credit ratings, with a stable outlook. The transfer and convertibility rating remains at "AAA". The stable outlook for Hong Kong's long-term rating reflects Standard & Poor's expectation that despite uncertainties in the global economic conditions over the next two years, Hong Kong's economy will still be able to maintain growth rates consistent with other high-income economies. Standard & Poor's believes that the flexibility and effectiveness of Hong Kong's policies have improved, such as ongoing investments to address supply constraints, and increased cross-border exchanges and connections with mainland China. Additionally, due to high social demands and regular infrastructure spending, the fiscal deficit of the Special Administrative Region government may remain sizable for a longer period, which could slow down fiscal consolidation and weaken support for the rating. At the same time, even with increased infrastructure spending by the government, Standard & Poor's expects the average budget deficit over the next two to three years to remain below 4% of gross domestic product.