China Economic Review: Standard & Poor’s raised China’s sovereign credit rating to AA minus from A plus in recognition of the country’s “exceptional growth prospects.Moody’s raised China’s rating to a similar level in November.Explaining its decision, S&P highlighted the government’s light debt load, a strong external asset position as well as the positive economic outlook. It said these factors more than offset any banking sector credit problems that might arise in response to a sharp economic downturn. “We may raise the ratings again if structural reforms lead to sustained economic growth that significantly lifts the average income level,” said Kim Eng Tan, an S&P credit analyst. Read more…..
GEI editor’s note: It seems unusual that China should have a lower credit rating than the U.S. based on balance sheet and cash flow comparisons. Must be who controls the world’s reserve currency.