FRIDAY, DECEMBER 10, 1993
KONG OTHER CORPORATIONS, SUCH AS THE MTRC, AS WELL AS THE HONG
WITH THE TWO CREDIT MONETARY AUTHORITY, ALSO HAD FREQUENT MEETINGS RATING AGENCIES, HE SAID.
GET THE RATING "I AM NOT UNHOPEFUL THAT IN DUE COURSE WE CAN
HE SAID. BACK TO A BETTER LEVEL. IT'S NOT BAD BUT IT COULD BE BETTER,
HE BELIEVED THAT MOODY'S ANNOUNCEMENT WOULD HAVE NO BIG ON OVERSEAS' VIEW OF HONG KONG,
IMPACT
0
—
A
MOODY'S ANNOUNCEMENT DISAPPOINTING AND SURPRISING
* * *
SAID
GOVERNMENT SPOKESMAN
TODAY
THAT HE (FRIDAY)
INVESTORS SERVICE DISAPPOINTED AT THE ANNOUNCEMENT OF MOODY'S DOWNGRADE THE LONG-TERM LOCAL CURRENCY RATING OF DEBTS ISSUED BY MASS TRANSIT RAILWAY CORPORATION (MTRC) WHICH WOULD AT THE SAME
LOCAL LONG-TERM APPLY
THE IMPLIED SOVEREIGN RATING ON DEBTS OF HONG KONG.
ΤΟ
"WE
GOVERNMENT
WAS
TO
THE
TIME
CURRENCY
FINANCIAL
FIND IT SURPRISING THAT WHILE ACKNOWLEDGING THE
AND THE LONGER-TERM ECONOMIC IT APPROPRIATE TO KONG, MOODY'S HAD CONSIDERED
THE CURRENCY RATINGS OF HONG KONG
MTRC,
STRENGTH OF THE HONG KONG PROSPECTS OF HONG DOWNGRADE THE LOCAL SPOKESMAN SAID.
AND
HE ADDED THAT THERE WAS NO REASON TO CONSIDER THAT THE CREDIT INCREASE RISK ATTACHED TO THE MTRC LOCAL CURRENCY DEBT ISSUES SHOULD GIVEN THE STRENGTH OF THE CORPORATION, AND THE DECISION WOULD NOT HAVE ANY IMMEDIATE OR SIGNIFICANT IMPACT ON MTRC.
THE
THE SPOKESMAN SAID THERE WAS LITTLE GROUND TO SUGGEST THAT HONG KONG DOLLAR WAS POTENTIALLY VULNERABLE TO POLITICAL UNCERTAINTIES BOTH IN HONG KONG AND CHINA.
HONG KONG HAS SINCE 1983 ADOPTED A LINKED EXCHANGE RATE UNDER WHICH THE HONG KONG DOLLAR IS FULLY BACKED BY THE U.S. DOLLAR.
SYSTEM
"THE LINK TO THE U.S. DOLLAR HAS ENSURED STABILITY OF THE VALUE OF THE HONG KONG DOLLAR. THE HONG KONG GOVERNMENT IS FULLY COMMITTED
CLEARLY SYSTEM WHICH HAS BEEN TO MAINTAINING THE OBJECTIVE OF OUR MONETARY POLICY.
"WE
ALSO
DEFINED AS
FOR
THE
THE
EXTREMELY STRONG BACKING HAVE
HONG KONG CURRENCY INCLUDING THE EXCHANGE FUND WHICH STOOD AT HK$287 BILLION AT
HE SAID. THE END OF 1992, AMONG THE LARGEST IN THE WORLD,
+
"I
REMARKABLY STABLE
AS A MATTER OF FACT, THE LINK HAS REMAINED SINCE ITS INTRODUCTION IN OCTOBER 1983, THE SPOKESMAN SAID.
IT
MAJOR
EXTERNAL
THE
JUNE
PROVED TO BE CAPABLE OF HAS
WITHSTANDING SHOCKS, FOR EXAMPLE, THE 1987 GLOBAL STOCK MARKET CRISIS, 1989 EVENT IN CHINA AND THE 1991 GULF WAR, HE SAID.
/HE ADDED