For Hong Kong’s pension fund managers fretting over the risk of forced divestments of U.S. Treasurys, Japan’s Rating and Investment Information has some words of reassurance.
The rating company, called R&I for short, reaffirmed that it will stick with its triple-A credit rating for the Treasurys, even though the three major global rating agencies have downgraded the debt, and as concerns mount that U.S. President Donald Trump’s fiscal package inflates government deficit.
While mostly serving domestic investors, R&I is an approved agency for Hong Kong’s Mandatory Provident Fund system, and as long as it maintains the top rating for the U.S., MPF funds are allowed to invest over 10% of assets in Treasurys.
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