DBRS gives A (high) to China

DBRS, Inc. said it assigned issuer ratings of A (high) to the long-term foreign and local currency debt of the People’s Republic of China and issuer ratings of R-1 (middle) to its short-term foreign and local currency debt.

The trend on all ratings is stable.

DBRS said the ratings reflect China’s large and diversified economic structure, and DBRS’ assessment that China’s centralized system provides government authorities with powerful tools to adjust to shocks and to continue market liberalization reforms. China’s strong external balance sheet, abundant domestic savings, and high international reserves further support the ratings.

Despite these strengths, China’s economic growth model – dependent on the extension of investment-oriented credit to achieve GDP growth targets – has begun to result in lower GDP growth, the agency said.

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