December 7, Standard & Poor's on Wednesday confirmed China's sovereign credit rating at "AA-" long-term and "A-1+" short-term after warning eurozone countries of possible downgrades, underlining the strength of the Asian powerhouse.

China's "exceptional growth prospects" and "modest government indebtedness" were key factors supporting its creditworthiness and stable outlook, said Chen Jinrong, an analyst at the rating agency.

China's "AA-" long-term and "A-1+" short-term sovereign credit ratings rank just below S&P's highest rating of “triple-A”.

The announcement came after S&P placed France, Germany and 13 other eurozone countries on a negative credit watch, or a warning of a possible imminent cut in their sovereign credit ratings, which could increase their borrowing costs.

The rating agency also said it may upgrade China’s ratings if the country pushes forward structural reform of domestic bond markets, relies more on market tools in macro-control and makes exchange rate policy more flexible.

China also has an “Aa3” sovereign credit rating from Moody’s Investor Services and an “AA-” rating from Fitch.

Source:21cbh.com