Fitch affirms China at 'A+'; outlook Stable

Fitch Ratings has affirmed China's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'A+' with a Stable outlook.

While robust external finances, strong macroeconomic performance, and size of the economy are supporting ratings, the large structural vulnerabilities in the financial sector, relatively low per capita income, and weaker governance metrics remain pain areas, Fitch said. 

Key quotes

Fitch forecasts growth will slow to 5.7% in 2020, from 6.1% in 2019. Our baseline currently assumes implementation of the entire suite of announced tariffs by the US Trade Representative, including a 15% tariff on about USD150 billion of consumer-goods imports from China scheduled to take effect in mid-December 2019. 

Recent progress towards reaching a US-China "phase one" trade deal suggests the possible postponement or eventual removal of some existing tariffs, which could pose an upside risk to our growth outlook.