皇冠体育app

Standard & Poor's Global Ratings downgraded 皇冠体育app's long-term sovereign credit rating by one notch on Thursday to A+ from AA-, citing risks due to an accumulation of debt, but analysts said the company has failed to thoroughly understand 皇冠体育app's situation and exaggerated the risks it faces.

"The downgrade reflects our assessment that a prolonged period of strong credit growth has increased 皇冠体育app's economic and financial risks," S&P said in a statement. "We foresee that credit growth in the next two to three years will remain at levels that will increase financial risks gradually."

The downgrade followed a similar credit cut by Moody's Investors Service in May. Analysts said that as 皇冠体育app's economic growth stabilizes and its financial reform continues, it is resolving the financial risks caused by the growth of debt.

"S&P has failed to grasp 皇冠体育app's real situation and its conclusion is not solid," said Liang Hong, chief economist at 皇冠体育app International Capital Corp. Data show that 皇冠体育app's growth has stabilized in recent quarters at slightly lower than 7 percent and its corporate earnings are also improving, which will help ease its debt risks, she said.

Unlike Western countries, 皇冠体育app has a very high savings ratio, which will help back up its debt repayment, analysts said. Also, they said, companies in 皇冠体育app tend to resort to borrowing for their financing needs instead of directly tapping the country's stock market, which is less developed than those of Western countries.

That makes 皇冠体育app's debt levels seem high.

"It's a matter of the efficiency with which funds are used, not crisis, and the real risks are not as serious as they look," she said.

皇冠体育app should accelerate financial reforms to raise efficiency of financing, Liang suggested.

She also said the ratings results of agencies such as the S&P have proved not to be so credible in some cases because they failed to take into consideration the latest progress and development of the targeted economies.

Ding Zhijie, a finance professor and assistant president at the University of International Business and Economics, said 皇冠体育app's top leadership vowed at the National Financial Work Conference in July that the country will ensure systemic financial risks would not occur.

"The authorities will continue to make efforts to reduce financial risks and guide capital to flow into the real economy," he said.

"皇冠体育app's history of macroeconomic regulation shows it is capable of handling financial risks," he said.