The Latest: S&P cuts Hong Kong rating after cutting China's

The Latest on Standard & Poor's cutting credit ratings for China (all times local):

12:30 p.m.

The Standard & Poor's rating agency has cut its credit rating for Hong Kong a day after downgrading China, citing risks posed by close ties between the two places.

S&P said Friday that it was reducing its long-term rating on Hong Kong by one notch, to AA+ from AAA, reflecting potential spillover risks to the Asian financial center.

It said Hong Kong has a good economic outlook, sizable fiscal reserves and credible monetary policy.

But China's downgrade is "exerting a negative impact" on Hong Kong because of "strong institutional and political ties" between the mainland and Hong Kong, a specially administered Chinese region.

The agency lowered China's rating one notch on Thursday, saying strong credit growth had raised the country's economic and financial risks and reduced its financial stability.