Hong Kong's creditworthiness achieved its highest level ever after Standard & Poor's Ratings Services raised its long-term sovereign rating to AA+ from AA.
The outlook was unchanged at stable.
The agency said the highest rating of AAA was possible if Hong Kong could demonstrate that adverse credit events on the mainland would not cause an abrupt and significant deterioration in the city's creditworthiness. The government would also need to maintain or show improvement in Hong Kong's fiscal report card.
'The rating action reflected a further improvement in the credit strength of the Chinese central government as well as the maintenance of the Hong Kong government's healthy fiscal performance,' Standard & Poor's credit analyst Kim Eng Tan said.
'Expectations of continued fiscal strength and stability in the ratings on China underpin the stable outlook on Hong Kong's long-term credit rating.'
Standard & Poor's raised the outlook for the city's AA long-term rating to positive from stable in July last year. It raised Hong Kong's rating to AA from AA-minus in July 2006.