S&P Global maintains its credit rating for China at ‘A+/A-’
The ratings agency said it may upgrade if credit growth slows further, but would downgrade if China slows down on stemming financial risk
Bengaluru — Rating firm S&P Global affirmed China’s “A+/A-1” credit ratings on Monday, saying the country would maintain above-average GDP growth and improved fiscal performance over the next three to four years.
The rating agency kept the country’s outlook stable and said it did not expect US-China relations to normalise in the foreseeable future, which likely means Chinese exports and manufacturing sector investment could see little growth over the next few years.
“The economy is also likely to face elevated uncertainties owing to US-China tensions and ongoing efforts to restructure the economy and reduce financial risks,” S&P Global Ratings said.
“US restrictions on technology transfers to China could hinder productivity improvements and China is more likely to maintain strong economic growth if the reform momentum picks up.”
The rating agency said it expected China’s real GDP per capita growth to remain above 5% annually in the next three years.
It said it could raise its ratings on China if credit growth slows further, but may downgrade if it sees a higher likelihood that China will ease its efforts to stem rising financial risk and allow higher credit growth to support economic expansion.