HONG KONG (AP) — Moody's has cut its credit rating for Hong Kong hours after downgrading China for rising debt levels, which it said would have "significant impact" on the Asian financial hub because of their close links.

The rating agency said late Wednesday that it's lowering its local currency and foreign currency issuer ratings by one notch to Aa2 from Aa1.

Earlier in the day, Moody's cut its China rating for the first time since 1989, saying that the country's financial strength is likely to erode as economic growth slows and debt will rise further.

Moody's said the downgrade reflects its view that tight economic, financial and political ties between Hong Kong and mainland China mean that the former British colony will ultimately be affected by any weakening of the mainland's creditworthiness.