Moody’s Ratings has updated its outlook for Macau from negative to stable and affirmed its local and foreign currency issuer rating at Aa3 – a reaction to the agency’s decision this week to change China’s outlook from negative to stable with an A1 rating.
In a Tuesday filing, Moody’s said its decision to mirror China’s outlook while keeping the Macau rating one notch above China reflects its assessment of very tight economic, political and institutional linkages between Macau and the mainland. As such, the stable outlook on China’s rating implies a stable outlook on Macau’s rating.
Moody’s had earlier pointed to China’s ability to keep growing despite property-sector stress, weak consumption and global tensions as key to its revision for the mainland, with growth slowing gradually but not collapsing.
