Fitch Ratings said in a statement yesterday that it has raised Macau’s rating outlook to “stable” from “negative” and affirmed Macau’s credit ratings (long-term foreign and local currency issuer default ratings) at “AA”.
The Macau Monetary Authority (AMCM) issued a statement on the credit rating agency’s upbeat assessment of Macau’s current and expected economic development.
The agency double-headquartered in New York and London pointed out that despite a notable decline in economic activity last year, Macau’s expected economic recovery warranted a “stable” outlook for the special administrative region.
The agency also said that Macau’s “strong public and external positions” as well as the government’s “prudent fiscal management have provided significant buffers to mitigate the unprecedented shock from the pandemic and uphold macroeconomic stability.”
According to Fitch’s rating definitions, ratings in the “AA” category indicate a very strong fiscal position for payment of financial commitments, and the capacity is not significantly vulnerable to foreseeable events. Therefore, the expectations of default risk are very low, the AMCM statement underlined.
Fitch is one of the world’s “Big Three” credit rating agencies, the other two being Moody’s and Standard & Poor’s. Fitch was founded in New York in 1914.
