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The Government today (April 18) welcomed Standard & Poor's (S&P's) decision to upgrade its foreign currency and local currency rating outlooks on Hong Kong from "stable" to "positive".
At the same time, S&P also affirmed Hong Kong's long-term foreign currency and long-term local currency ratings at "AA-".
S&P also noted that an upgrade of the ratings on China, together with continued fiscal consolidation in Hong Kong, could lead to higher ratings on Hong Kong.
Welcoming the news, the acting Financial Secretary, Mr Stephen Ip, said the upgrade reflected the international recognition of Hong Kong's strong economic fundamentals and improved public finances and growth prospects.
"It also showed the continuing improvements in Hong Kong's fiscal position," he said.
"We are committed to consolidating Hong Kong's public finances further with continued fiscal discipline. We will also shortly be undertaking a public consultation exercise on broadening our revenue base through the introduction of a Goods and Services Tax," Mr Ip said.
S&P last upgraded Hong Kong's long-term foreign currency rating from "A+/positive" to "AA-/stable" in July 2005 based on improved fiscal prospects, while the potential challenges that may arise from increased economic integration with the Mainland have been reduced.
S&P last raised Hong Kong's foreign currency outlook from "stable" to "positive" in May 2005 and Hong Kong's local currency rating outlook from "negative" to "stable" in June 2004.
Ends/Tuesday, April 18, 2006
Issued at HKT 19:38
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