The Macau government has expressed its disagreement with Moody’s decision to downgrade the region’s economic outlook from “stable” to “negative,” as announced by the credit rating agency.
According to the statement, the Monetary Authority of Macau emphasizes that Moody’s Investors Service has maintained the long-term issuer credit rating of the Macau SAR at ‘Aa3.’ According to Moody’s rating definition, the ‘Aa3’ rating falls within the fourth-highest category, indicating a very low credit risk of default. However, the SAR government disagrees with Moody’s decision to change the region’s outlook from ‘stable’ to ‘negative.’
Macau government highlights that it will continue a series of tourism promotions, combined with the orderly progress of non-gaming investment projects by gaming concessionaires; this effectively enhances Macau’s international competitiveness and enriches its role as a global tourism and leisure center.
The statement also mentions that during the economic adjustment period, the SAR government adheres to prudent fiscal management, supported by ample fiscal and foreign exchange reserves. This positions the Macao SAR to effectively cope with and resist external risks. The SAR government has no debt burden, and its public finances, external balances, and financial conditions are stable. Banks maintain good asset quality and capital levels.
With the full openness of the border, Macau has experienced a gradual return to normalcy in the tourism industry; external demand is driving a steady recovery in the Macau economy.
‘In the first three quarters of 2023, the local gross domestic product recorded a substantial year-on-year real growth of 77.7 percent,’ it wrote.
