Moody's Investors Services yesterday confirmed the B financial strength rating of Hang Seng Bank. The agency said the confirmation reflected its view that the bank's capital base, loan portfolio, reserves and earnings would prevent regional credit problems from damaging its credit standing. The bank's ratings outlook remains negative, reflecting Moody's concern about volatility in East Asia and the possibility Hong Kong's markets could suffer disruptive price movements in the next two years. These could result from uncertainties concerning exchange rate alignments in the region, the agency said. Ratings agency Fitch IBCA yesterday affirmed its A+ long-term foreign currency rating for Hong Kong, citing confidence in the policies of the SAR Government. The agency said the Government's 'unbending' defence of the peg despite a sharp fall in shares and property prices, coupled with prudent fiscal and monetary policies, huge reserves, impartial civil service and legal system, inspired confidence. 'Hong Kong has the traditional flexibility to assist its economy in adapting to current economic challenge, not least in the proven ability of its people to accept occasional sharp downturns in asset prices,' it said.
