he city’s ratings are underpinned by “robust” fiscal and external finances as gaming-driven boom brings in large tourist revenue.
“However, heavy reliance on casino-related activities and exposure to China country risk are vulnerabilities for the sovereign,” the report, led by analyst Anna Thung, says.
The report says that the local economy and public finances have become increasingly tied to gaming-sector performance.
Revenue from gaming accounted for 87.7 % of the Gross Domestic Product, while the government is estimated to have relied on this sector for 76.5 % of its revenue in 2012, Fitch says. Macau is also too exposed to the mainland’s policy and tourism, it adds.