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5/17, 8:22 PM (Source: TeleTrader)
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China credit rating could be affected if trade war continues

The trade war between China and the United States could impact the former's economy as well as its credit rating if it is not resolved, CNBC reported on Friday.

The media outlet said that China's credit is still strong in spite of a weakening economy and its tariff war with the US. However, analysts at the world's fourth-largest ratings agency DBRS stated in a note that the trade war was negatively affecting China at a time when its policymakers were grappling with problems of rising debt and increasing leverage in its economy. They added that further central bank intervention could impact China’s public debt ratio as well as its rating. The firm, which previously rated China "A," its third-highest classification, recently changed its outlook to negative.

Earlier in the day, Chinese state media accused the US of "petty tricks" and a lack of sincerity. On the other hand, previous reports alleged that trade negotiations between the two countries broke down last week because the Chinese delegation presented the US with a drastically reduced counter-offer.

Breaking the News / DZ