Moody’s affirms Macau’s ‘Aa3’ credit rating, citing strong fiscal position

Moody’s Investors Service reaffirmed Macau’s long-term issuer rating at “Aa3”, reflecting the region’s strong fiscal fundamentals and robust external buffers.

The rating places Macau in the high investment-grade category, indicating very low credit risk.

The international rating agency highlighted the city’s lack of government debt and substantial financial reserves as key reasons behind the decision.

These factors, Moody’s noted, provide the SAR with ample capacity to absorb external economic shocks.

The Statistics and Census Bureau (DSEC) has reported a 1.3% year-on-year decrease in gross domestic product (GDP) attributed to changes in tourist consumption patterns, with preliminary figures for the first quarter of 2025 reaching MOP99.7 billion.

According to the bureau’s statistics, after a rapid recovery in 2023 from Covid-19, Macau’s economy gradually returned to normal growth in 2024.

Year-on-year real growth slowed from 23.0% in the first quarter to 3.4% in the fourth quarter.

However, entering 2025, the preliminary figure for the first quarter’s GDP stood at MOP99.78 billion, representing a year-on-year real decrease of 1.3%.

The overall economic scale was equivalent to 85.2% of the same period in 2019.

According to the Monetary Authority of Macao, total foreign exchange reserves stood at MOP 186.6 billion as of April, further reinforcing confidence in the SAR’s external strength. LV