S&P have cut Hong Kong's credit rating after cutting China's

Shutterstock / Lewis Tse Pui Lung

BEIJING (AP) — The Standard & Poor's rating agency has cut its credit rating for Hong Kong a day after downgrading China, citing risks posed by close ties between the two places.

S&P said Friday that it was reducing its long-term rating on Hong Kong by one notch, to AA+ from AAA, reflecting potential spillover risks to the Asian financial center.

It said Hong Kong has a good economic outlook, sizable fiscal reserves and credible monetary policy.

But China's downgrade is "exerting a negative impact" on Hong Kong because of "strong institutional and political ties" between the mainland and Hong Kong, a specially administered Chinese region.

The agency lowered China's rating one notch on Thursday, saying strong credit growth had raised the country's economic and financial risks and reduced its financial stability.

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