(CBN - Global) April 13 -- Moody's and Standard & Poor's downgraded China's long-term sovereign debt rating to negative from stable in March. In contrast, Fitch Ratings, another big international ratings agency, maintains a stable rating outlook on the Chinese market.
The market is most concerned with the downside risks facing China, including a hard landing for the Chinese economy, a meltdown of the financial system and a sharp devaluation of the Chinese yuan, Mr. Andrew Fennell, associate director of the Asia-Pacific sovereign ratings department at Fitch Ratings said yesterday in an interview with CBN. However, in terms of ratings outlook, Fitch believes such risks are unlikely to materialize.
China's Finance Minister Mr. Lou Jiwei said he is aware of the credit rating downgrade last month, but it has not led to changes in the indices related to Chinese sovereign debt. Offshore Chinese yuan holdings have risen instead of falling and no funds are shorting China.
"Greece was given a higher rating during the Greek crisis than we were. We do not care about their ratings. As for communicating with rating agencies, we do not need to greet them," said Mr. Lou.