Hong Kong: The Hong Kong government has hit back after its international credit rating was downgraded for its inability to tackle the city's ongoing political upheaval.

The news comes after another weekend of violence that saw the second legal assembly of the new year prematurely shut down by police amid scenes of tear gas, chaos and violence.

Riot police stand guard outside a department store in Causeway Bay. Credit:Getty Images

"We strongly disagree with Moody's assessment of Hong Kong's current situation and are deeply disappointed by Moody's decision to downgrade Hong Kong's credit rating," a government spokesman said in a statement.

Moody's investment rating, changed from Aa3 from Aa2, could damage Hong Kong's long-term economic reputation and destabilise the city's financial institutions.