RSS   Newsletter   Contact   Advertise with us
Post Online Media
Asia   Economic and financial risks

China's credit rating downgraded by S&P

Standard & Poor'sChina's credit rating has been downgraded by Standard & Poor's (S&P) because of worries over the rapid buildup of debt in the country.

Article continues below

READ MORE S&P lowers Hong Kong rating to AA+

S&P cut China's rating by one notch from AA- to A+, saying its debts had raised “economic and financial risks”.

The International Monetary Fund warned in August that China's credit growth was on a “dangerous trajectory”. S&P's move puts its rating for China on a par with the two other major credit rating agencies, Moody's and Fitch.

This government has a growth target of 6.5% for 2017, although the economy grew at an annual rate of 6.9% in the second quarter of the year. One engine of growth has been investment in infrastructure and property by corporations and local authorities.

S&P said in a statement: “The downgrade reflects our assessment that a prolonged period of strong credit growth has increased China's economic and financial risks.”

What to read next

We use cookies to ensure that we give you the best experience on our website. Please allow cookies for fully-functioning website.

Allow Cookies Privacy Policy