US credit rating agency Moody’s Investors Service affirmed yesterday Macau’s local and foreign currency issuer rating at Aa3 and maintained the special administrative region’s “stable outlook”.
The Aa3 rating indicates that an obligor has a very strong capacity to meet its financial commitments.
According to a statement by the New York City-based agency, there are three key drivers of the rating affirmation: “Large and growing fiscal and external buffers will continue to provide Macau significant capacity to counter future shocks; further progress on diversification toward non-gaming activities will, over time, support less volatile GDP growth; Macau will remain susceptible to potential and economic policy measures from [mainland] China that pose risks to its gaming and tourism sectors.”
