S&P cuts China credit rating outlook on risk of slower rebalancing

Hong Kong

STANDARD & Poor's (S&P) has cut the outlook for China's credit rating to negative from stable, saying the nation's economic rebalancing is likely to proceed more slowly than the ratings firm had expected.

China's AA- long-term credit rating now has a negative outlook, S&P said in a statement on Thursday. Earlier in March, Moody's Investors Service made a similar revision, highlighting surging debt and questioning the government's ability to enact reforms.