Breaking News: S&P Raises China’s Sovereign Rating to AA- from A+

ypm968

S&P Raises China’s Sovereign Rating to AA- from A+, Outlook Stable (story developing)
http://www.cnbc.com/

gummykitty

wow, this is a big deal

gummykitty

BEIJING (Dow Jones)--Standard & Poor's Ratings Services on Thursday upgraded China's sovereign debt rating, citing its large foreign reserves, strong fiscal position, and positive growth outlook.

S&P raised its rating on China's sovereign debt to "AA-" from 'A+" reflecting "the government's modest indebtedness, a strong external asset position, and our view of the economy's exceptional growth prospects," the ratings agency said in a statement.

The announcement from S&P follows a similar move by Moody's Investors Service, which raised its rating for China's sovereign debt last month.

S&P said the government may face "contingent liabilities in the banking system that could materialize if an extended economic slowdown unfolds," but that the country's many strengths outweigh that potential pitfall.

The upgrade amounts to a vote of approval for China's response to the financial crisis. "We believe the Chinese authorities would respond to future threats to financial stability with timely measures, based on our observation over the past two years," S&P analyst Kim Eng Tan said in the statement.

trade28

thx

spicyfreak

can someone kindly explain the implication and effects on trading?

tonyshen

xz214

tenteddies

can someone kindly explain the implication and effects on trading?
spicyfreak 发表于 2010-12-16 08:28

坐着板凳等。。

xiaozhu

same here!

sooners

回复 9# xiaozhu


    me too

wai-po

nothing happened to Shanghai stock market yet...

catbear

你们要这么看， 去年爱尔兰出现危机萌芽时，S&P把爱尔兰从AA+降到了AA。

今年爱尔兰危机爆发后，S&P在11月又把爱尔兰从AA-降到了A。

所以对中国从A+涨到AA-的解释是： 中国比今年的爱尔兰强，但还不如去年的爱尔兰。