S&P affirms China's credit rating

International credit rating agency Standard & Poor's (S&P) has affirmed China's long-term and short-term credit ratings at "A+/A-1" and maintained the credit rating outlook as "stable". In a statement made by the credit rating agency, it was announced that China's credit rating was affirmed. The statement conveyed that China's long-term credit rating was confirmed as "A+" and its short-term credit rating as "A-1". It was stated in the statement that the country's credit rating outlook was maintained as "stable", and that the stable outlook reflects the view that China will continue to grow above average for the next 2 years. The statement stated that the country's fiscal deficit may remain above pre-pandemic levels this year as the government increases spending to ease domestic and external challenges. It was stated in the statement that the Chinese economy is recovering from the Covid-19 restrictions in 2022, but weak global demand and the danger in the real estate sector are hindering this recovery. The statement noted that the country's financial situation had worsened due to the increase in government debt and interest burden, but some consolidation was expected in the next 2 years. The statement noted that local authorities were more cautious in supporting off-balance sheet debt, and that the economic recovery was expected to continue, albeit at a slower pace, and that China's financial performance was expected to begin to improve in the next 2 to 3 years.