Expert says S&P downgrade 'not comprehensive'

US financial service agency S&P's decision to downgrade China's credit ratings is "not comprehensive" as the rating ignored the fact that China's stronger economic performance in the first six months has helped a great number of enterprises to have stronger debt-paying abilities, an expert said.

Bai Chong'en, director of the National Institute for Fiscal Studies at Tsinghua University, pointed out that profits for businesses in China had increased considerably in the first half of 2017 and had equipped them with a stronger debt-paying ability, and S&P's downgrading decision should have also taken this fact into account.

The agency lowered China's sovereign credit rating by one notch to A+ from AA- on Thursday, citing economic and financial risks arising from China's fast credit growth.