No ba­sis for out-of-sched­ule meet­ing for China, says S&P

New Straits Times - - Business -

BEI­JING: Stan­dard & Poor’s (S&P) is likely to fol­low its reg­u­lar rat­ings re­view sched­ule for China, and does not see any ba­sis at this point for an out-of-sched­ule com­mit­tee meet­ing, a se­nior di­rec­tor at the rat­ings agency said yes­ter­day.

Moody’s In­vestors Ser­vice last week cut its sov­er­eign rat­ings on China by a notch, putting them on par with those of Fitch Rat­ings.

That put S&P one step above the two agen­cies, hold­ing an “AA-” rat­ing with a neg­a­tive out­look that it has main­tained since March last year.

“I don’t think there has been any­thing that could jus­tify the call­ing of an out-of-sched­ule com­mit­tee at this point in time, so we are likely to fol­low our reg­u­lar re­view pat­tern,” said Kim Eng Tan, S&P’s Asia-Pa­cific se­nior di­rec­tor of sov­er­eign rat­ings, in a phone in­ter­view.

Tan de­clined to say when the next reg­u­lar re­view would be.

Moody’s cut China’s sov­er­eign rat­ings to “A1”, say­ing it ex­pects the fi­nan­cial strength of the world’s sec­ond-largest econ­omy to erode in com­ing years as growth slows and debt con­tin­ues to mount.

Fitch on Fri­day kept its “A+” rat­ing on China, cit­ing its “strong macroe­co­nomic track record”, though the agency also noted an ac­com­pa­ny­ing build-up of im­bal­ances and vul­ner­a­bil­i­ties.

But no­body is ex­pect­ing any form of fi­nan­cial in­sta­bil­ity any­time in the near fu­ture, said Tan. Reuters

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