China_Sovereign_Credit_Rating_History.pdfVIP

GlobalSecuritiesW is an anti-fraud sponsored project by securities industry professionals dedicated to promoting transparency of the worlds financial markets. Upgrade History of China’s Sovereign Credit Rating by SP, Moody’s and Fitch Ratings The Chinese government’s refusal to honor repayment of its defaulted sovereign debt first became widely published in June 2001. Since that time, the three primary NRSROs have upgraded Chinas international sovereign credit rating (i.e., the long-term foreign currency sovereign credit rating assigned to China) ten (10) times, as follows: SP: Assigned initial rating in 1988 and seven (7) subsequent upgrades, five (5) of which occurred post-June 2001: Assigned “Satisfactory” rating classification (July 1988) From “Satisfactory” to “BBB” (February 1992) From “BBB” to “BBB+” (May 1997) Reclassified from “BBB+” to “BBB” (July 1999) From BBB (affirmed in 2001) to BBB+ (February 2004) From BBB+ to A- (July 2005) From A- to A (July 2006) From “A” to “A+” (July 2008) From “A+” to “AA-” (December 2010) SP has maintained an investment grade rating for China since 1992, which SP defines as an issuer not having any defaulted full faith and credit sovereign debt outstanding and unpaid. Note that SP affirmed Chinas investment grade credit rating the very next day (October 22, 2003) following the Congressional hearing on the ABF, in order to strengthen the sale of Chinas sovereign bonds and notes registered in the U.S. the same month (October 2003). Compare the published definition of Chinas prevailing artificial investment grade rating with the definition of the truthful rating of Selective Default: /Sovereign_Ratings_Definitions_and_Criteria Moodys: Assigned the first credit rating to China