14.07.201700:31:00UTC+00Fitch Affirms China’s Credit Rating

Fitch Ratings retained its A+ rating on China along with a stable outlook. The ratings agency noted the strength of the country's external finances and macroeconomic performance for the rating decision.

Fitch said China's short-term growth outlook continues to be favorable and economic policies has been gaining traction in combating a number of domestic and external pressures in the last year.

On average, economists expect China's economic growth to hit 6.6 percent this year, beating the government's target of around 6.5 percent.

However, the increasing and massive debt levels in the non-financial sector, along with the low stand-alone credit quality in the financial system continue to be the most significant risk factor for the sovereign rating.

Fitch said it expects official aggregate financing to increase to 2087 percent of the GDP this 2017 versus 2016 percent in the previous year and 114 percent in 2008. It also projects that a broader credit measure that takes into account activity not included in the official series will increase to around 270 percent at the year-end.