S&P downgrades ChinaStaff 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.
Asia To A+ from AA-
“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. ■