Credit rating agency Moody’s leaves Macau’s rating unchanged at “Aa3”

28 June 2013

Credit rating agency Moody’s has maintained its rating on Macau at “Aa3”, the fourth highest possible rating, and explained its decision based on the territory’s economic “resiliency” a strong public finance position and low susceptibility to risks.

Moody’s added that despite the small size of the Macau economy and its high dependence on a single sector, the gaming industry, its resiliency has been demonstrated by high growth rates in the last decade, which have driven per capita income to a very high level.

In 2012, Macau’s GDP rose 9.9 percent to US$43.5 billion and per capita income was driven to US$76,588 per year as a result.

A Macau’s current account has posted an average surplus of 31 percent of GDP since 2002 and reached a high of 46 percent in 2011 driven by a rise in gaming sector revenue.

According to Moody’s Macau is still vulnerable to external shocks such as a drop in the number of tourists and competition in the gaming sector from other Asian destinations. (macauhub)