Rating the China contagion risk

After China, it\'s Hong Kong\'s turn to take Moody\'s Investors Service to task.
  • 27 Junio 2017

The city's financial secretary wrote a blog post on Sunday to express his displeasure with the recent one-notch cut in Hong Kong's sovereign rating to Aa2. More than the downgrade, what seems to have really irked Paul Chan are the 16 references to "links" and "linkages;" four mentions of "connect" and "connects;" one occurrence of "interdependence;" and as many as 13 allusions to "close," "closer," "tight" and "tightening" in Moody's press release. Those words, which the rating company used to characterize the city's relationship with China, must have grated all the more because Moody's pared Hong Kong's rating hours after it downgraded China for the first time since 1989.In his post, Chan wanted to know why the rating company is punishing Hong Kong. After all, the rest of the world, too, is scrambling to align with the People's Republic.

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