Standard & Poor’s rating agency cuts China’s credit rating on Thursday due to its rising debts, The Times reports.
The China’s long-term rating was changed from AA- to A+ with a warning of expected economy slows.
The downgrade added to mounting warnings about the dangers of increasing Chinese debt, which has fueled fears of a banking crisis or a drag on economic growth.
"A prolonged period of strong credit growth has increased China's economic and financial risks. Although this credit growth had contributed to strong real GDP growth and higher asset prices, we believe it has also diminished financial stability to some extent,” S&P said in a statement.
Moody's Investors Service cut its own rating for China in May. The Chinese finance ministry said the agency had used improper methods and misunderstood China's economic difficulties and financial strength.
Chinese economic growth fell from 14.2% in 2007 to 6.7% in 2016.