US ratings agency Standard & Poors out with a note on China 21 Sept
- long term sovereign credit ratings lowered to "A+" vs "AA-"
- prolonged period of strong credit growth has increased economic and financial risks
- "Stable" outlook reflects view that China will maintain robust economic performance and improved fiscal performance in next 3-4 years
- sees credit growth in next 2-3 years to remain at levels that will increase risks gradually
- expect China's per capita real GDP growth to stay above 4% annually, even as public investment growth slows further
- recent intensification of Chinese govt efforts to reign in corp leverage could stabilize trend of financial risk in medium term
Cautionary report published a short while ago. Posting for info.
In a BBG TV interview just now Yale lecturer Stephen Roach had this to say:
- ratings agencies notoriously lacking indicators
- China has a debt problem
- S&P may be the last to figure out China's issue
Meooow.
USDJPY currently 112.43 still drifting lower . AUDUSD 0.7951 just off session lows following its post-Lowe fall from 0.8005.
"Does that ratings drop change the price of bamboo? "