S&P apply to open China ratings business
May 25, 2018
Financial ratings agency S&P Global has announced plans for a stand-alone business in mainland China, the Wall Street Journal reports, hoping to overcome recent disagreements with China’s government regarding its sovereign debt.
If the proposal is approved by Chinese regulators, S&P will be taking advantage of a trade agreement signed last year opening up China’s capital markets to U.S. ratings firms. Up to this point, the company has operated in China under a joint venture with local Shanghai Brilliance Credit Rating & Investors Service Co., but will be discontinuing the partnership under the new arrangements.
S&P will be looking to reverse some hostilities from the Chinese government after it, along with fellow ratings giant Moody’s, downgraded China’s sovereign debt amid the country’s growing credit concerns.