The Macau government has expressed its disagreement with Moody\u2019s decision.<\/p>\n\n\n\n\n\n\n\n
Macau.- Moody<\/strong>\u2019s announced on Wednesday that it has changed the outlook of the Macau government to negative from stable<\/strong> while keeping the city\u2019s foreign currency issuer ratings at Aa3. The Monetary Authority of Macau<\/strong> issued a statement saying it disagrees with Moody\u2019s decision.<\/p>\n\n\n\n The rating agency\u2019s announcement came after an outlook change on the Government of China\u2019s A1 rating to negative. It cited the costs to bail out governments and state firms as well as the country\u2019s property crisis.<\/p>\n\n\n\n \u201cThe change in Macau\u2019s rating outlook to negative reflects Moody\u2019s assessment of tight political, institutional, economic, and financial linkages between Macau and the mainland, which keep the rating gap between the SAR and China no wider than one notch,\u201d Moody\u2019s states, adding that \u201cthe negative outlook on China\u2019s rating, therefore, implies a negative outlook on Macau\u2019s rating.\u201d<\/p>\n\n\n\n Moody\u2019s said that Macau\u2019s \u201clarge tourism and gaming sectors are heavily dependent on China, while its banking system is similarly exposed to cross-border claims to the mainland. At the same time, tighter political and institutional linkages have become more evident in recent years, notwithstanding the broad retention of Macau\u2019s policy autonomy under the principle of \u2018One Country, Two Systems\u2019.\u201d<\/p>\n\n\n\n The Macau government said it will continue a series of tourism promotions that, combined with non-gaming investment by gaming concessionaires, enhance Macau\u2019s international competitiveness. It said it adheres to prudent fiscal management, supported by ample fiscal and foreign exchange reserves. <\/p>\n","protected":false},"excerpt":{"rendered":" The Macau government has expressed its disagreement with Moody\u2019s decision.<\/p>\n","protected":false},"author":226,"featured_media":25557,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"is_press_release":false,"is_interview":false,"is_opinion":false,"focusai_summary":"Moody's has revised Macau's government outlook from stable to negative, maintaining its Aa3 foreign currency issuer ratings, citing tight linkages with mainland China's economic challenges. The Monetary Authority of Macau has expressed disagreement, emphasizing ongoing tourism promotions, non-gaming investment by concessionaires, and prudent fiscal management to enhance international competitiveness.","focusai_entities":"Moody's, Monetary Authority of Macau, Government of China, Macau government","focusai_location":"Macau, China","focusai_target_profile":"ceo_executive (0.9), regulator (0.7), operator_casino (0.9), investor_analyst (1.0), supplier_vendor (0.7), journalist_researcher (0.9)","focusai_suggestions":[{"label":"Impact on Concessionaire CAPEX?","query":"What are the potential implications of Macau's negative sovereign outlook on the capital expenditure plans and non-gaming investment commitments of the gaming concessionaires?"},{"label":"Future Rating Downgrade Risk?","query":"Given the tight linkages, what is the probability of further rating downgrades for Macau, and how would this affect the cost of capital and foreign direct investment into the region's gaming verticals?"}],"footnotes":""},"categories":[157,16338],"tags":[257],"class_list":["post-777011716","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-news","category-east-asia-news","tag-macau"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777011716","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/users\/226"}],"replies":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/comments?post=777011716"}],"version-history":[{"count":2,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777011716\/revisions"}],"predecessor-version":[{"id":777011727,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777011716\/revisions\/777011727"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media\/25557"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=777011716"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=777011716"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=777011716"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}