What is China credit rating?
Singapore, December 05, 2023 -- Moody's Investors Service ("Moody's") today changed the outlook to negative from stable on China's government credit ratings while affirming China's A1 long-term local and foreign-currency issuer and senior unsecured ratings and the (P)A1 foreign-currency senior unsecured shelf rating.
Singapore, December 05, 2023 -- Moody's Investors Service ("Moody's") today changed the outlook to negative from stable on China's government credit ratings while affirming China's A1 long-term local and foreign-currency issuer and senior unsecured ratings and the (P)A1 foreign-currency senior unsecured shelf rating.
"We last affirmed our A+ long term ratings on China in June with stable outlook and there has been no changes to that yet," said S&P in an emailed response to queries from Reuters. The firm currently has an A+ rating for China sovereign with a 'stable' outlook.
| Country/Territory | Rating | Outlook |
|---|---|---|
| Canada | AAA | Stable |
| Switzerland | AAA | Stable |
| Chile | A | Negative |
| China | A+ | Stable |
China's Social Credit System has been implicated in a number of controversies. As of 2024, there is no single social credit system or score.
Standard & Poor's credit rating for the United Kingdom stands at AA with stable outlook. Moody's credit rating for the United Kingdom was last set at Aa3 with stable outlook.
Fitch Affirms Canada at 'AA+'; Outlook Stable. Fitch Ratings - New York - 19 Dec 2023: Fitch Ratings has affirmed Canada' Long-Term Foreign-Currency and Local-Currency Issuer Default Ratings (IDR) at 'AA+' with a Stable Outlook.
S&P Global Ratings currently rates India as 'BBB-' with a stable outlook.
| Rating Agency | Rating | Action |
|---|---|---|
| Standard & Poor's | AAA | outlook upgrade |
| Moody's Investors Service | Aaa | outlook upgrade |
| Fitch Ratings | AAA | |
| DBRS | AAA |
Sovereign Rating Model (SRM) and Qualitative Overlay (QO)
Fitch's proprietary SRM assigns France a score equivalent to a rating of 'AA-' on the Long-Term Foreign-Currency (LT FC) IDR scale.
Is China more advanced than the US now?
In other words, on a proportional basis, China is now roughly 75 percent as advanced in innovation and advanced-industry production as the United States. If this relative growth continues apace, China will surpass the United States by 2035.
China is the highest ranked country on two measures: economic relationships and diplomatic influence.
At 89, China ranked meaningfully higher than the United States at 129, down one place from 2021. America's overall peacefulness rating is negatively affected by its jailed population, nuclear and heavy weapons, weapons experts, external conflicts fought and militarization.
Some of the top examples include Australia, Canada, Denmark, Germany, Sweden, Switzerland, Norway, and Hong Kong. These are all countries that generally carry a credit rating of AAA.
People with low social credit ratings often face restrictions from traveling by plane or train in China. The travel ban also extends to traveling overseas to stop people with bad social credit from leaving the country. School bans. Those with a low social credit score may face school bans for their children.
The goal of the corporate social credit rating is to combine data from many different sources to provide a public searchable database of companies, and to evaluate and score those companies against a list of compliance criteria.
Economies with the highest credit rating at S&P Global Ratings, Fitch and Moody's Investors Service include Germany, Denmark, Netherlands, Sweden, Norway, Switzerland, Luxembourg, Singapore and Australia. Canada is rated AAA by two of the ratings companies, per Bloomberg.
Greece's 'BBB-' rating also reflects the following key rating drivers: Fundamental Credit Drivers: Greece's ratings reflect income per capita levels and governance indicators that are well above the 'BBB' median, as well as policy credibility supported by EU and eurozone membership.
Fitch Affirms Australia at 'AAA'; Outlook Stable. Fitch Ratings - Hong Kong - 09 Nov 2023: Fitch Ratings has affirmed Australia's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'AAA' with a Stable Outlook. A full list of rating actions is at the end of this rating action commentary.
Although ranges vary depending on the credit scoring model, generally credit scores from 580 to 669 are considered fair; 670 to 739 are considered good; 740 to 799 are considered very good; and 800 and up are considered excellent.
How to get 800 credit score?
To reach an 800 credit score, you'll want to demonstrate on-time bill payments, have a healthy mix of credit (meaning accounts other than just credit cards), use a small percentage of your available credit, and limit new credit inquiries.
While older models of credit scores used to go as high as 900, you can no longer achieve a 900 credit score. The highest score you can receive today is 850. Anything above 800 is considered an excellent credit score.
'bbb' ratings denote good prospects for ongoing viability. The financial institution's fundamentals are adequate, such that there is a low risk that it would have to rely on extraordinary support to avoid default. However, adverse business or economic conditions are more likely to impair this capacity.
AAA ratings are issued to investment-grade debt that has a high level of creditworthiness with the strongest capacity to repay investors. The AA+ rating issued by S&P and Fitch is similar to the Aa1 rating issued by Moody's.
Current rating unchanged
In its announcement, Moody's affirmed that its current rating of China remains A1, several notches below the top level of Aaa, but still in the middle of what the agency considers "investment grade" debt. The United States is rated Aa1 by Moody's, one step below the top rating.
