Wednesday, 20 November, 2019

China's Credit Rating Slashed

Reuters Reuters
Debra Rodriguez | 22 September, 2017, 01:34

S&P downgraded China to A+ from AA-, a one notch change. It may however be worth reading between the lines.

Standard & Poor's cut its rating on China's long-term debt rating following a prolonged period of strong credit growth that has increased the country's financial and economic risks. Moody's lowered its sovereign rating in May on similar concerns.

S&P said the recent government efforts to rein in borrowing by companies could help mitigate financial risks, although it still expects that Chinese corporate debts will continue to grow over the next two to three years at levels that increase financial risks gradually.

Although this credit growth had contributed to strong real GDP growth and higher asset prices, S&P said it has diminished financial stability to some extent. In any case, the bulk of China's government debt is bought by state-owned banks and held to maturity, the economist noted.

Beijing has been clamping down on bank lending and property purchases, but those efforts are complicated by the government's determination to meet its full-year growth target of around 6.5 percent.

Tom Dumoulin dominates World Championship time trial, Chris Froome takes bronze
Froome , who 10 days ago completed a Tour-Vuelta double, seemed a little off the pace at the beginning. The victory is the first rainbow jersey for Dumoulin who looked strong throughout the race.

China's gross domestic product (GDP) grew 7.3 percent in 2014, 6.9 percent in 2015, and 6.7 percent past year, according to the International Monetary Fund (IMF) data.

However, Williams said, the downgrade was "arguably questionable on the basis of recent economic and financial development".

The downgrade comes at a particularly awkward time for China's leaders, just weeks ahead of China's Communist Party Congress.

China is the world's second-largest economy behind the USA, and the S&P downgrade from "AA-" to "A+" is in line with similar downgrades by both Fitch and Moody's earlier this year.

The economy revealed fresh signs of headwinds in August as data showed last week that industrial output and retail sales unexpectedly slowed for a second consecutive month.

Recommended

Kevin Durant calls Twitter blunder 'childish' and 'idiotic' day after trashing Thunder Kevin Durant calls Twitter blunder 'childish' and 'idiotic' day after trashing Thunder Shortly after, Durant's alleged secret Instagram was uncovered and lead one person on a bit of an investigative trail. Durant said while he would continue to interact with fans, he expected to scale back his social media activity.

Hodgson gets Palace back to winning ways Hodgson gets Palace back to winning ways This is my first big injury since I was a footballer. It is a good feeling to be on the pitch. Souare said: "It is step-by-step".

Wall St edges up on telecom gains; Fed meet in focus Wall St edges up on telecom gains; Fed meet in focus Inflation has been kept in check, despite an otherwise healthy labor market, which should theoretically lift prices and inflation. While the UK's FTSE 100 Index edged down by 0.1%, the German DAX Index and the French CAC 40 both crept up by 0.1%.

Bihar: Rs 389 cr dam collapses before inauguration Bihar: Rs 389 cr dam collapses before inauguration Speaking on the incident, Minister of Water Resources, Lallan Singh said, "The dam broke due to release of water in full capacity. The incident has not caused any damage to the newly constructed part of the project", Lallan Singh had said.

Lenovo and Google Unveil Moto X4 Android One Edition for $399 As such, it will be updated to Android Oreo promptly ( promised by the end of the year) and Android P, which will launch in 2018. The rear dual camera setup compromises of a 12-Megapixel sensor+8-Megapixel ultra-wide angle lens with 120-degree field of view.

Has British government decided not to tag terror with religion? Has British government decided not to tag terror with religion? Both men had spent time in the same care of foster parents, Penelope and Ronald Jones, who have fostered nearly 300 children. The blast inflicted flash burns on passengers when it went off at Parsons Green, a quiet and well-off residential district.

OECD upgrades eurozone and China growth forecasts; United Kingdom and USA unchanged OECD upgrades eurozone and China growth forecasts; United Kingdom  and USA  unchanged The Paris-based economic think tank says it now expects the Canadian economy to grow by 3.2 per cent this year, best in the G7. Globally, the pace of expansion is expected to pick up this year compared to 2016, with a further uptick projected in 2018.

Game of Thrones' Bryan Cogman Developing Fifth Prequel Game of Thrones' Bryan Cogman Developing Fifth Prequel HBO already has four possible Game of Thrones prequels in development, why not add a fifth? Speculate away, Game of Thrones fans. Throughout Game of Thrones season 7 , Arya Stark has been showing off her mad knife skills, using the dagger Bran gave her.

Holder gives Windies hope in delayed England ODI Holder gives Windies hope in delayed England ODI But Holder, who hit Willey to the long-on rope, gave the innings some much-needed impetus. West Indies won the T20 on Saturday.

Timmons suspended 'indefinitely' by NFL Dolphins Timmons suspended 'indefinitely' by NFL Dolphins The Dolphins brought Timmons in primarily for his run defense, and was set to be the team's key blitzer. However, the Dolphins linebacker was later found at Los Angeles International Airport (LAX).

Major 7.1 magnitude natural disaster strikes Mexico city Major 7.1 magnitude natural disaster  strikes Mexico city The AP reported that the governor of Morelos says 42 people have died in his central Mexican state following the quake. Moderate shaking - or intensity 5 shaking - is defined by the USGS as "felt by almost everyone; many awakened".

Irma death toll rises in Florida Irma death toll rises in Florida Scott's rule will expire in 90 days, and he vowed to take action against facilities that don't comply within the 60-day deadline. On Saturday, power was restored to at least three nursing homes and 10 assisted living facilities housing elders in Florida.

Angela Merkel challenged on abortion by woman with Down's Angela Merkel challenged on abortion by woman with Down's "We must fight against the leaders of the party, but we must not attack their sympathizers", said the SPD candidate. She is standing for a further term in office and the polls are predicting that she will be re-elected on Sunday.

Senate Republicans push last-gasp Obamacare repeal amid hurdles Senate Republicans push last-gasp Obamacare repeal amid hurdles Susan Collins of ME and Lisa Murkowski of Alaska, who stood up against July's repeal effort. "As he has said before, Sen". Senate leadership called on the Congressional Budget Office to rush scoring on legislation - released by Sens.

New Call of Duty: WWII Trailer Details the Story New Call of Duty: WWII Trailer Details the Story This will be our second look at the game's campaign , having been only shown once during the initial reveal in a short trailer . Day two will bring us details about the squad you'll be part of in the campaign, which Sledgehammer teased at the game's reveal.