Moody's: Macao view to stable

Moody's Investors Service said the outlook on Macao's Aa3 government bond rating remains stable.

The special administrative region's Aa3 issuer ratings are supported by its exceptionally strong fiscal and external financial indicators, the Macao government being unique in having no debt outstanding and large financial assets, the agency said.

Despite this favorable government financial position, the main constraint on the rating is the lack of diversity in the economy, balance of payments revenues and government revenue sources, all of which depend to a high degree on a single industry, gaming, Moody's said.

Although this sector has experienced rapid growth, it is potentially vulnerable to shocks that could affect Macao's government finances, the agency said.

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