HONG KONG (Reuters) - Hong Kong's long-term downgrade for the first time since 1995 has been downgraded by Fitch, saying the city's recent political turmoil has raised doubts about governance there.
Hong Kong's credit rating fell from AA to AA, Fitch said yesterday. According to Bloomberg News, the protests and unrest in the city have raised investor concerns and increased the likelihood that investments will exit the world financial center, which has always been seen as safe. The city's economy has been hit by the protests that erupted three months ago, as well as by the trade war between China and the United States, Hong Kong's two biggest trading partners. "Months of continuous conflict and violence are a test of the perimeter and resilience of the framework of one country and two systems, which govern Hong Kong's relationship with the mainland," Bloomberg said in a statement. "The gradual increase in Hong Kong's economic, financial and social ties with China means continued integration into the Chinese government system, which will pose more institutional and regulatory challenges over time," the statement said.