Standard & Poor’s (S&P) has upgraded China’s sovereign debt rating to reflect its strengthening economic position, the Financial Times reported. The country’s long-term sovereign credit rating has risen from A to A+ while the short-term rating has moved from A1 to A1+. S&P credit analyst Kim Eng Tan said the upgrade was linked to improvements in the government balance sheet that will enable China to cope more effectively with the shocks of a potential sharp economic downturn. The country’s record US$1.8 trillion in foreign exchange reserves was also a consideration. S&P identified China’s key weakness as the risk to government finances from an economic slowdown created by problems in the banking sector. It said the risk is becoming more acute because policymakers rely on administrative measures to manage the economy.