Moody's lowered the outlook on Hong Kong Mortgage Corp. Ltd. to negative from stable.
The rating agency said Sept. 17 that it also affirmed the company's long- and short-term senior unsecured and issuer ratings at Aa2 and P-1, respectively. In addition, it affirmed the company's other short-term ratings at (P)P-1, as well as its baseline credit assessment at "a2."
The rating agency's recent move to lower the outlook on Hong Kong's government to negative from stable drove the lowered outlook on Hong Kong Mortgage, Moody's said.
Hong Kong Mortgage's long-term ratings are aligned with those of the Hong Kong government given the former's government ownership and public policy mandates, broad representation of government officials and legislators on its board of directors, and ongoing and expected extraordinary government support, if needed, the rating agency added.
