Moody's adjusted Hong Kong's credit rating outlook from Negative to Stable, while affirming its Aa3 local and foreign currency long-term issuer ratings. In Moody's view, Hong Kong's credit status may be resilient to global trade tensions and periods of easing trade growth.

The Stable outlook also reflected Moody's assessment that Hong Kong's policy framework, combined with the strength of its economic and financial conditions, will maintain its credit reliability, even if the mainland government's rating faces downward pressure, which may be greater than Moody's previously assessed.

The confirmation of Hong Kong's Aa3 rating incorporated Moody's assessment of its evident credit strengths, including a high-income and competitive economy, ample fiscal and external buffers, and a strong track record of effective monetary and fiscal policies.

These strengths continued to provide resilience against shocks and long-term trends, including an aging population, decelerating Chinese economic growth, and ongoing global geopolitical uncertainties. Hong Kong's Aa3 rating was also under consideration of its economic, fiscal, and institutional ties with China, which could keep Hong Kong's rating within two notches of China's sovereign rating for the foreseeable future.