Fitch reaffirms China’s credit rating, keeps outlook stable on strong overall economic development

China’s credit rating has been reaffirmed by Fitch Ratings this week, besides, keeping the credit outlook stable, following strong overall economic development. The ratings agency would continue to rate the country 'A+’, the third highest that Fitch can give and is part of the desirable investment grade.

The agency bases its decision on the strong overall economic development of the second largest economy following the US. At the same time, there are imbalances that may constitute a risk for the economic and financial stability. For the current year, the agency expects economic growth of 6.7 percent, with 6.4 percent for next year.

However, this aspect is brushed aside with the reference that many banks are state-owned or state-controlled. In the end, the main argument in support of the positive rating is the continued level of high growth by international comparison.

Fitch’s analysis rests on clay feet though as the Chinese GDP data is not only the first to be published each quarter but also the only ones that hardly ever get corrected. Blessed are those countries that have an office for national statistics that is so accurate, Commerzbank reported.