Buildings are seen on a clear day in Beijing on Dec 23, 2016. (GREG BAKER / AFP)
BEIJING - China's Ministry of Finance (MOF) on Friday said it was a "wrong decision" for the global rating agency Standard & Poor's (S&P) to cut China's sovereign credit rating.
China's Ministry of Finance said the decision was "perplexing" as the downgrade came while economic growth had gained a firmer footing
The ministry said on its website that the decision was "perplexing" as the downgrade came while China's economic growth had gained a firmer footing with improving quality as the country continues to push supply-side structural reform.
China's Ministry of Finance said the decision was "perplexing" as the downgrade came while economic growth had gained a firmer footing.S&P lowered China's sovereign
credit rating by one notch to A+ from AA-, citing economic and financial risks
from its fast credit growth.
Calling it "cliche," the MOF said it was a
pity for S&P to focus on China's fast credit growth and debt issues, but
ignore the country's distinctive financing structure, the wealth-creating effect
of the government's spending and its support for growth, as well as the sound
development fundamentals and growth potential.
"The downgrade is a
result of the international rating agencies' long-standing mode of thinking, and
misreading of the Chinese economy based on developed countries' experiences," it
said.
S&P Global Ratings said on Friday that China's deleveraging process will be much more gradual than expected in the next few years, adds Reuters.
S&P analysts said during a teleconference the agency does not expect China's credit growth peaking within one to two years but added risks to the sovereign rating will stabilise in the next few years.
READ MORE: S&P revises China outlook to stable from negative
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