On of the world’s leading credit ratings agencies has reportdly awarded Macau with a robust AA3 evaluation due to the casino-friendly enclave’s financial reserves as well as its low government debt and ability to create regular fiscal surpluses.
According to a report from Inside Asian Gaming, Moody’s Investors Service issued the stable rating yesterday while also explaining that Macau could expect to see increased growth prospects in the near future due to its large financial reserves providing protection from any ‘sudden external shocks’.
“Such shocks would likely stem from economic, financial and policy developments in China,” reportedly read the rating from New York City-based Moody’s Investors Service.
The credit ratings firm reportedly declared that it moreover expects increasing revenues from casino and non-gaming visitors to aid the former Portuguese enclave’s financial recovery over the next two to three years, although it warned that the city of around 651,000 people remains vulnerable to ‘potential policy measures in China.’ Moody’s Investors Service purportedly detailed that these could include ‘a further tightening of China’s anti-corruption crackdown’ alongside the potential weakening of its own gambling market, should casino gambling ever be introduced on the mainland.
“As a small, open and concentrated economy, Macau’s gross domestic product growth will remain volatile,” reportedly read the analysis from Moody’s Investors Service.
Inside Asian Gaming reported that the evaluation from Moody’s Investors Service involved the study of four key categories including ‘fiscal strength,’ in which Macau achieved a ‘very high plus’ score. It additionally purportedly chalked up a ‘low’ mark for ‘susceptibility to event risk’ although the city was assigned the rather less dramatic ‘moderate’ mark for its ‘institutional strength’ and ‘economic strength’ qualities.