S&P cuts Hong Kong credit rating after downgrading China for first time since 1999

Concerns over ballooning debt

S&P Global Ratings has downgraded Hong Kong credit a day after lowering the sovereign credit rating for China for the first time since 1999 on concerns over soaring debt levels, while revising its outlook for the country from stable to negative.

S&P stripped Hong Kong of its AAA rating on Friday, lowering this to AA+, saying this reflects "potential spillover risks to the SAR [Hong Kong special administrative region] should deleveraging in China prove to be more disruptive than we currently expect". Earlier this year, Moody's also cut Hong Kong's rating by one notch on fears over contagion from China.  In a statement on Thursday, the ratings agency said it had cut its sovereign debt rating for China by one notch to A+ from AA-.  Its analysts also cut the ratings on three foreign banks with primary operations in China - HSB...