Beijing’s moves to cool credit growth have set in motion events that could put 1 of every 10 loans within China‘s banking system in distress, weighing on sector profitability for the next few years, ratings agency Standard & Poor’s said in a report Wednesday.
The rating agency said its forecast was based on a scenario in which lending rates rise significantly while government support to debtors is negligible. Standard & Poor’s Liao said the conclusions were based on scenarios that took into account the volatile credit conditions that could be expected. '+'
