Japan's Rating and Investment Information has downgraded the preliminary rating for Hong Kong's long-term foreign currency debt to AA- from AA. It also downgraded the preliminary rating for long-term Hong Kong dollar debt to AA from AA+. Its preliminary ratings for short-term foreign currency and Hong Kong dollar debt stood at a-1+. The agency said it had downgraded Hong Kong's financial position because its service and financial sectors would be affected in the medium term by the regional turmoil. 'Hong Kong's financial sector which contributes one quarter of [gross domestic product] will experience slower growth in the coming years due to the declining demand for fund raising in Asia,' it said. In line with its sovereign downgrading, the agency cut various ratings of the Mass Transit Railway Corp, including the rating of its Samurai bonds, to the value of 15 billion yen (about HK$898.97 million).