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S&P downgrades China

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Staff Writer | September 21, 2017
S&P Global Ratings (S&P) downgraded China’s long-term sovereign credit rating, citing increasing risks from its rapid build-up of debt.
China rating
Asia   To A+ from AA-
S&P’s one-notch downgrade to A+ from AA- comes as Beijing grapples with the challenges of containing financial risks stemming from years of credit-fueled stimulus to meet ambitious government economic growth targets.

“The downgrade reflects our assessment that a prolonged period of strong credit growth has increased China’s economic and financial risks,” S&P said in a statement, adding that the ratings outlook was stable.

S&P had said in June there was a “real” chance of a downgrade and a decision would be made based on whether China is able to move away from a credit-driven growth strategy.

The demotion follows a similar move by Moody’s Investors Service in May.