Credit rating agency Standard & Poor’s (S&P) Global Ratings on Monday affirmed China’s sovereign credit ratings at “A+/A-1” with a stable outlook, amid the ongoing coronavirus outbreak. S&P in its report said that China is likely to maintain above-average economic growth relative to other middle-income economies in the next few years. However, it said that the growth is likely to come under pressure from the coronavirus outbreak, efforts to restructure the Chinese economy and US-China tensions.
The agency noted that it does not expect US-China relations to normalise in the foreseeable future.
“We expect per capita real GDP growth to average 5.5 per cent annually in 2021-2023, as the economy recovers from the COVID-19 shock”, S&P said in its report said on Monday.
Earlier this month, S&P had also retained India’s sovereign rating at the “BBB-” – the lowest investment-grade level – with a stable outlook.