Moody’s raises Macau’s credit rating to “Aa2”

4 March 2014

Moody’s has raised its credit rating on Macau from “Aa3” to “Aa2”, the third highest possible rating after “Aaa” and Aa1”, with a stable outlook, the agency said in a statement issued Monday.

In the statement the agency explained its review of the rating by noting “rapid and continued growth, continuing budget surpluses and financial reserves and very strong balance of payments and foreign reserve position.”

Moody’s noted that the likely accumulation of financial assets was “a buffer against potential shocks” but added that the small size of Macau’s economy and its high dependence on a single industry, in this case gaming, placed some pressure on the credit rating “which is not expected to be raised in the near future.” (macauhub)