HONG KONG: Credit rating agency Moody’s on Monday downgraded Hong Kong’s rating to “Aa3” from “Aa2”, saying its view on the strength in Hong Kong’s institutions and governance is “lower than previously estimated.”

The agency, however, moved its outlook to stable from negative.

“The absence of tangible plans to address either the political or economic and social concerns of the Hong Kong population that have come to the fore in the past nine months may reflect weaker inherent institutional capacity than Moody’s had previously assessed,” the agency said in a statement.