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The Hong Kong government on Tuesday issued a statement in response to Moody's recent downgrading of the city's long-term debt issuer rating amid social unrest, saying it strongly disagrees with the agency's assessment of the current situation.

"The HKSAR Government, with the staunch support of the central government, has firmly upheld the 'one country, two systems' principle and handled the situation in accordance with the law to curb violence independently and restore social order as soon as possible," said the government statement.

Moody's Investors Service on Monday cut Hong Kong's rating to Aa3 from Aa2, saying the Hong Kong authorities' strength of governance was lower than it had previously estimated, particularly in dealing with local political, economic and social concerns.

However, the Hong Kong government noted that many of the social issues it faces, including wealth inequality, an ageing population and high home prices, are not unique to the city. It stressed that Hong Kong is strengthening efforts to improve people's livelihoods and that the city is still competitive as an international center for finance and trade.

The Hong Kong government's expenditure on social welfare has increased 29 percent to $84.3 billion in across 2019-20, as part of the city's proactive measures to handle social issues, according to the statement from the Hong Kong government.

Fitch, another credit rating agency, downgraded Hong Kong's rating to AA from AA+ in September, also driven largely by ongoing local conflict.