S&P Global Ratings Affirms China's Sovereign Credit Rating Amid Strong Economic Performance

S&P Global Ratings has maintained China's sovereign credit rating at "A+" with a stable outlook, recognizing the country's economic resilience and prospects. The Ministry of Finance attributes this to China's proactive response to the changing external environment and effective debt management. The country is expected to achieve its economic and social development goals in the second half of the year, with a stable economic growth contributing to the global economy.

S&P Global Ratings has maintained China's sovereign credit rating at "A+" with a stable outlook, reflecting the country's economic resilience and prospects. The rating agency cited China's strong fiscal stimulus as a key factor in keeping economic growth resilient despite headwinds from the property sector and tariff pressures [1].

The stable outlook indicates that S&P expects China to return to self-sustaining economic growth of 4% or more annually over the next one to two years. This growth trajectory will allow the government to gradually reduce policy support for the economy over the next several years. However, S&P noted that it could lower China's rating if the government pursues larger fiscal stimulus over the next three to five years, but may raise the rating if fiscal consolidation proceeds faster than anticipated [1].

China's Ministry of Finance expressed satisfaction with the reaffirmation of its sovereign credit ratings, pledging to dynamically adjust policy reserves and strive to achieve the annual growth target. The world's second-largest economy grew at a slightly faster pace than expected in the second quarter, but July economic data has been mixed, with manufacturing activity shrinking for a fourth straight month even as exports posted an unexpected surge [2].

S&P's stable outlook is a positive sign for foreign investors, who have been cautious due to geopolitical uncertainties. The rating agency's positive assessment of China's economic fundamentals and its ability to manage local government debt risks could lead to increased investment inflows into the Chinese market [3].

In summary, S&P's stable outlook on China's economy reflects its confidence in the country's ability to navigate through economic challenges and maintain a balanced growth trajectory. The rating agency's assessment is supported by the resilience shown by China's services sector and the progress made in managing local government debt. As China continues to address these structural issues, the stable outlook from S&P is a positive sign for investors and the broader economy.

References:
[1] https://www.reuters.com/markets/asia/sp-affirms-chinas-sovereign-credit-rating-with-stable-outlook-2025-08-07/
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_L1N3TZ0DI:0-s-p-affirms-china-s-sovereign-credit-rating-at-a-with-stable-outlook/
[3] https://www.ainvest.com/news/china-rating-shows-confidence-china-economy-2508/