S&P affirms China’s credit rating

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

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

In the statement, which states that the outlook for the country’s credit rating remains “stable”, it was noted that the stable outlook reflects the view that China will continue to grow above average over the next 2 years.

The country’s fiscal deficit could remain above pre-pandemic levels this year as the government increases spending to ease internal and external challenges, according to the statement.

The statement stated that the Chinese economy had recovered from the Covid-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 country’s financial situation worsened due to the increase in public debt and interest charges, but some consolidation is expected in the next 2 years.

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