S&P: China's downgrade won't have direct impact on sovereign ratings elsewhere other than Hong Kong

The US-based ratings agency, Standard and Poor’s (S&P) is out with a statement on Friday, justifying China’s sovereign ratings downgrade, after China’s Finance Ministry said that the downgrade was S&P’s wrong decision.

Key Points:

Doesn't see China's credit growth peaking within 1-2 years

China's downgrade won't have direct impact on sovereign ratings elsewhere other than Hong Kong

Still looking at credit implications for firms owned by Hong Kong govt

It looks for actual decline in china's financial risks going forward, not just stabilization

China downgrade won't have big impact on flows into China's debt markets