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China's Credit Party Rolls On Despite S&P's Downgrade

  • Downgrade to have only marginal impact on yield spreads: ING
  • Chinese firms sold record amount of dollar bonds this year
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S&P Cut China's Rating on Debt Threat

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China’s latest rating cut won’t take away the punch bowl, and investors are likely to keep lapping up debt of the nation’s companies at an unprecedented pace.

That’s the view of many money managers and analysts after S&P Global Ratings lowered China’s credit score for the first time since 1999. They have recent precedent for that forecast. Even as Chinese authorities have cracked down on excessive borrowing in the financial system, firms have taken advantage of low interest rates to pile on debt.