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-----Original Message-----
From: MeLinda MeLisa <[email protected]>
Sender: [email protected]
Date: Fri, 17 Dec 2010 10:19:38 
To: <[email protected]>
Reply-To: [email protected]
Subject: [StockForex] S&P Upgrades China's Credit Rating

China Credit - S&P Raises China’s Long-Term Sovereign Rating - CNBC


S&P Upgrades China's Credit Rating

BEIJING—Standard & Poor's Ratings Services 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 double-A-minus from
A-plus, reflecting "the government's modest indebtedness, a strong
external asset position, and our view of the economy's exceptional
growth prospects," the agency said Thursday.

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 China'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.

Implementing structural reform during the global slowdown improves the
likelihood of macroeconomic stability, S&P said in a statement.

"We may raise the ratings again if structural reforms lead to
sustained economic growth that significantly lifts the average income
level," Tan said.



Source: http://marketpin.blogspot.com/


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