China Says S&P Wrong to Lower Sovereign Ratings

(Beijing) — The decision of U.S. ratings firm Standard & Poor’s to downgrade China’s sovereign debt is a “wrong decision” and hard to understand, as both the fundamentals and quality of Chinese economic growth have improved and the government is able to control credit risks, the Ministry of Finance said on Friday.

The ministry’s comments came a day after S&P Global Ratings cut the nation’s long-term and short-term sovereign credit ratings by one notch, citing concerns over the growing economic and financial risks facing the country from a “prolonged” borrowing spree. S&P was the last of the three major credit-ratings companies to lower China’s debt rating.