Standard and Poor's Ratings Services has upgraded Hong Kong's local currency rating outlook.

Hong Kong's Financial Secretary Henry Tang said the decision reflects its recognition of Hong Kong's economic fundamentals, financial strength and recent economic recovery. 

Tang also said the positive rating will benefit the price level of the future government bond issue. Welcoming the decision, he said the budget-balance target of 2008-09 remains unchanged.

And responding to its comments on Hong Kong's tax base, Tang said the government is actively studying ways to broaden the tax base.

(CRI.com June 30, 2004)