Economics
S&P Cuts China’s Credit Rating, Citing Risk From Debt Growth
- Reduction comes just before key 19th Party Congress next month
- Credit growth ‘diminished financial stability’ S&P says
China Downgraded to A+ From AA- by S&P
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S&P Global Ratings cut China’s sovereign credit rating for the first time since 1999, citing the risks from soaring debt, and revised its outlook to stable from negative.
The sovereign rating was cut by one step, to A+ from AA-, the company said in a statement late Thursday. The analysts also lowered their rating on three foreign banks that primarily operate in China, saying HSBC China, Hang Seng China and DBS Bank China Ltd. would be unlikely to avoid default should the nation default on its sovereign debt.