S&P affirms China A+/A-1 ratings, with stable outlook

S&P Global Ratings, in its latest report, affirmed China’s sovereign credit ratings at A+/A-1 while maintaining a Stable outlook.

Key takeaways

“China is likely to maintain above-average economic growth performance relative to other middle-income economies in the next few years.

China's growth is likely to come under pressure of uncertainties over COVID-19, US-China tensions, ongoing efforts to restructure the economy.

China's stable outlook reflects the view that it'll maintain above-average headline GDP growth, improve its fiscal performance over the next 3 to 4 years.

Expect China's per capita real GDP growth to average 5.5% annually in 2021-2023, as the economy recovers from COVID-19 shock.

Do not expect US-China relations to normalize in the foreseeable future.”