Macau’s long term debt rating in foreign and local currency was given an “AA-“ rating with a stable outlook, Fitch Ratings said in a statement issued Wednesday.
The “AA-“ rating is the fourth highest available rating on the scale for a country or territory, which begins at “AAA” and ends at “D”, the latter being for countries that have defaulted on their payments.
In the document Fitch noted that Macau had a robust taxation system as well as in terms of its external accounts, with the gaming industry providing significant revenues that lead to budget surpluses.
However, the agency said, the territory’s dependence on gaming and gambling and its exposure to China’s risk as well as the gambling policies of mainland China are the source of some vulnerability.
Macau’s international reserves at the end of 2012 totalled US$35 billion, or around 81 percent of Gross Domestic product (GDP) (US$43.5 billion) and is also equivalent to around seven months of foreign payments. (macauhub)