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