BRIEF-Fitch Says Downgrades Hong Kong to 'AA' from 'AA+'; Outlook Negative

* FITCH DOWNGRADES HONG KONG TO 'AA' FROM 'AA+'; OUTLOOK NEGATIVE

* FITCH - EXPECTS HONG KONG'S CONSIDERABLE FINANCIAL BUFFERS TO NEVERTHELESS REMAIN INTACT * FITCH, ON HONG KONG, SAYS A MORE CHALLENGING ECONOMIC LANDSCAPE HAS EMERGED AS A RESULT OF BLOW TO DOMESTIC ACTIVITY PRECIPITATED BY CONTINUED UNREST

* FITCH, ON HONG KONG, SAYS FORECASTS REAL GDP GROWTH OF 0% IN 2019, IMPLYING AN OUTRIGHT CONTRACTION DURING SECOND HALF OF THIS YEAR, AND 1.2% IN 2020 * FITCH, ON HONG KONG, SAYS EXPECT BUDGET SURPLUS WILL NARROW TO ROUGHLY ZERO THIS YEAR, IN LIGHT OF RECENTLY ANNOUNCED FISCAL SUPPORT MEASURES

* FITCH - HONG KONG'S CONSIDERABLE FINANCIAL BUFFERS TO NEVERTHELESS REMAIN INTACT * FITCH, ON HONG KONG, SAYS ANTICIPATE THAT REVENUES WILL UNDERPERFORM BUDGET FORECASTS

* FITCH, ON HONG KONG, SAYS EXPECTS "ONE COUNTRY, TWO SYSTEMS" FRAMEWORK TO REMAIN INTACT * FITCH, ON HONG KONG, SAYS NEGATIVE OUTLOOK REFLECTS VIEW THAT EVEN WITH CONCESSIONS TO SOME PROTESTOR DEMANDS, A DEGREE OF PUBLIC DISCONTENT LIKELY TO PERSIST

* FITCH ON HONG KONG SAYS BELIEVES AUTHORITIES HAVE AMPLE RESOURCES TO MAINTAIN HK DOLLAR PEG TO US DOLLAR, GIVEN FOREIGN-RESERVE HOLDINGS OF $441 BLN, EQUIVALENT TO ROUGHLY 2X MONETARY BASE * FITCH ON HONG KONG SAYS FACTORS THAT CONTINUE TO SUPPORT HONG KONG'S CREDIT PROFILE INCLUDE ITS STRONG RECORD OF PUBLIC-FINANCE MANAGEMENT, HIGH-INCOME LEVELS, AND ITS RESILIENT AND FLEXIBLE ECONOMY Source text for Eikon:

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