S&P affirms China’s credit rating

In a statement made by the credit rating agency, it was reported that China’s credit rating was confirmed.

In the statement, it was stated that China’s long-term credit rating was confirmed as “A+” and short-term credit rating as “A-1”.

Stating that the country’s credit rating outlook is maintained as “stable”, it was noted that the stable outlook reflects the view that China will continue to grow above the average for the next 2 years.

The country’s fiscal deficit could remain above pre-pandemic levels this year as the government increases spending to alleviate domestic and foreign challenges, the statement said.

In the statement, it was stated that the Chinese economy recovered from the Kovid-19 restrictions in 2022, but it was stated that weak global demand and the danger in the real estate sector prevented this recovery.

In the statement, it was noted that the financial situation of the country worsened due to the increase in the government debt and interest burden, but some consolidation is expected in the next 2 years.

Pointing out that local authorities are more cautious in supporting off-balance sheet debt, the statement said that the economic recovery is expected to continue, albeit at a slower pace, and that China’s financial performance is expected to start to improve in the next 2 to 3 years.