S&P analyst Kim Eng Tan noted on Thursday that China’s credit rating could be downgraded if the world’s second-largest economy chose to continue recovering its economy by mainly using extensive stimulus.
The postponement of economic improvement within the next year or two could cause S&P Global to revise down the current A+ stable credit score for China.
China’s S&P rating was last downgraded in 2017, while Moody’s gave the country’s rating as downgrade warning in December, as there were concerns about the country’s property market.
Meanwhile, Tan stated that the current situation was mixed, and China still had decent chances to bear an economic rebound this year.
