Fitch reaffirms ‘AA’ long-term credit ratings for Macao

Fitch Ratings Inc. reaffirmed in April 2020 its long-term foreign and local currency issuer default ratings for the Macao SAR at “AA”, the third-highest possible, with a “negative” outlook. The international rating agency bases its reaffirmation on what it described as the strong fiscal and external positions of the region, and the stringent fiscal prudence shown by the Macao SAR Government. Fitch described the default risk as very low. The agency said the Macao economy could benefit in due course from its moderately diversification efforts and its steadier pattern of growth. Fitch said Macao possessed the advantages of a credible policy framework, a resilient linked exchange-rate system, a solid external financial position, stringent fiscal discipline and a sound financial system. The agency said these advantages would benefit Macao’s economy over time and continue to support the creditworthiness and economic resilience of Macao in the face of the threat posed by the COVID-19 pandemic at home and worldwide.