Payment defaults in the first quarter are at their lowest levels since 2002 as the economy continues to pick up steam, according to a credit survey of 1,508 Hong Kong goods and services firms.
The study, conducted by Coface Frontline, a France-based credit-insurance and credit-management services provider, found that 7.3 per cent of respondent companies had recorded payment defaults in the past three months, compared with 8.1 per cent in the previous quarter.
Only 31.8 per cent of the sampled companies reported late payments, compared with 37.2 per cent in the final quarter of last year.
The survey covers payment performance by both local and overseas buyers, with the former constituting the highest proportion in both the late payment and default categories.
Coface general manager Grace Wong said that the company had upgraded Hong Kong's country risk rating to A1 from A2 last week, citing steady improvement in the local economic climate.
'As local economic prospects brighten, we expect the payment performance of Hong Kong buyers to improve next quarter,' Ms Wong said. 'However, local businesses are still recommended to regularly monitor customer payments to identify potential late payments or defaults.'
