HK's credit rating reaches all-time high (hktdc.com)


	Leading global financial authorities agree Hong Kong's economic fundamentals are going from strength to strength

	Hong Kong International Airport has again won international kudos (photo credit: HKIA)

Hong Kong's economic resurgence has been strongly underscored after two leading ratings agencies upgraded their credit outlook based on the city's strong external assets and healthy government finances.

Moody's Investors Service upgraded Hong Kong's long term foreign currency and local currency sovereign ratings to "Aa2" from "Aa3", with a "stable" outlook, prompting Financial Secretary John Tsang's comment that the "upgrade reflected international recognition of Hong Kong's strong economic fundamentals".

"Hong Kong has now achieved AA ratings for its foreign currency and local currency obligations by all major international credit-rating agencies, the highest that have ever been assigned to Hong Kong," he added.

Moody's Vice President Steven Hess pointed out the Hong Kong Government has almost no debt and large and growing fiscal reserves equivalent to one quarter of GDP. This has allowed the city to accumulate one of the strongest net international investment positions in the world. "This strong position gives the government considerable financial flexibility and provides a strong buffer against potential shocks emanating from the Chinese mainland and elsewhere," he said.

Meanwhile, Standard & Poor's ratings service upgraded its outlook on the city's AA rating to "positive" from "stable". The agency cited recent improvements to Hong Kong's financial position, particularly in controlling government expenditure. It also noted that Hong Kong enjoyed a large degree of autonomy over domestic policy, global economic relations and external trade and investment affairs, enshrined in the basic law.

Airport soars

Passenger, cargo and air traffic were also on the rise in the first half of this year, reported the Hong Kong International Airport (HKIA). Compared to the corresponding period in 2006, the first six months of 2007 saw passenger volume surge up by 6.4 per cent to 22.7 million; cargo traffic grew 1.5 per cent to 1.7 million tonnes and air traffic movement increased 4.4 per cent to 143,000.

Passenger and cargo numbers were not the only things flying. HKIA was also named the Best International Airport and Asia-Pacific's Most Efficient Airport in the 2007 TravelWeekly (Asia) Industry Awards. HKIA won the Air Transport Research Society award after receiving the top score among 30 major Asian airports. Conducted by international aviation experts, the Global Airport Benchmarking Project measured productivity and efficiency, costs and competitiveness, financial results and airport changes.