Fitch Keeps China Long-Term Issuer Default Ratings at A+

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Fitch Ratings - Sputnik International
The Fitch ratings agency has affirmed China's long-term Issuer Default Ratings (IDRs) at A+ in both local and foreign currency with a stable outlook.

MOSCOW (Sputnik) — China's economy has recently been experienced significant turmoil, with growth rates at record lows, an increasingly volatile stock market and the yuan sliding against other currencies. In January, China said its 2015 GDP increase to be the lowest in over 20 years.

"China's robust external finances and strong macroeconomic track record continue to support the sovereign rating at its current level of 'A+'," the ratings agency said in a statement late on Monday.

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Unsecured bonds were also affirmed at A+, while short term IDRs were affirmed at F1+, the top short-term rating, according to the statement.

Despite the affirmation and significant financial and administrative resources, China's growing economic problems will mean rising vulnerabilities over the next two years, the statement added, stressing that a rising debt burden and the authorities' preference for high growth rates over stability will reduce government capacity to respond to economic risks.

Fitch forecast China's GDP to grow 6.4 percent next year compared to this year's forecast of 6.7 percent.

China's main strengths continue to be its external finances, the internationalization of the yuan and significant currency reserves.

Standard & Poor's currently rates China at AA- while the Moody's rating stands at Aa3, both with a negative outlook.

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