The importance of credit rating
Hong Kong is an important business destination and this is confirmed by its rating for investments. This evaluation performed by specialized rating agencies is a good indicator of Hong Kong’s creditworthiness and economic stability.
Hong Kong has a good credit rating, confirmed by the most important rating agencies and companies. Before opening a company in Hong Kong, foreign investors usually like to take a look over the reports issued by credit rating agencies. If you want to open a Hong Kong company, the existing credit ratings can help you make a decision.
The Fitch Ratings for Hong Kong
Fitch Ratings is one of the biggest nationally recognized statistical rating organizations. The company assigns its credit ratings on an alphabetic scale, with “AAA” as the highest possible rating and “D” as the lowest.
On the Fitch rating scale, Hong Kong has a god rating for investments and is awarded an AA+ grade with stable outlook. This means that Hong Kong companies are considered quality companies, with a slightly higher risk than AAA.
The S&P ratings for Hong Kong
Standards & Poor’s Financial Services LLC (S&P) is another American financial services company and one of the three biggest companies in the world to publish credit ratings, along with Fitch Ratings and Moody’s. S&P also publishes an analysis on stocks and bonds.
S&P’s rating for Hong Kong is AAA with a stable outlook, which means that the country is rated as having an extremely strong capacity to meet its financial commitments. Moody’s credit rating for Hong Kong is Aa1 with a stable outlook. The Aa1 rating means that Hong Kong is considered a high quality investment destination with low credit risk.
Why invest in Hong Kong
Apart from its excellent credit rating, Hong Kong also offers an excellent geographical position oriented towards important markets. Foreign investors who want to invest in Hong Kong have a number of legal entities to choose from and the company registration process in Hong Kong is designed to be straightforward and simple.
For more information about investing in Hong Kong and if you want to open a Hong Kong company, please contact our Hong Kong company formation agents.