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Chinese official: Credit rating agencies are 'absolutely wrong'

Apr 18, 2016, 15:37 IST

A security officer stands guard at the Great Hall of the People during the third plenary session of the National People's Congress (NPC) in Beijing, China, March 13, 2016.REUTERS/Kim Kyung-hoon

China's vice finance minister hit back at cuts made by credit rating agencies in their outlook for Chinese debt.

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Zhu Guangyao said that prospects for economic growth in China warranted a better rating.

"Their assessment for change from stable to negative is absolutely wrong because the IMF just downgraded global economic forecasts 2016 from 3.4% to 3.2% and all advanced economies have been downgraded," he said in an interview with CNBC.

"However, compared with that, the IMF upgraded China's economic forecast from 6.3% to 6.5%… I think the IMF forecast gives us a strong response to ratings agencies," he added

Standard & Poor's last month cut its outlook for the Chinese government's credit rating, maintaining the double-A minus rating but changing the outlook to negative from stable.

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Another ratings company, Moody's Investors Service, also lowered its outlook on Chinese debt in the same month.

Guangyao also cited Britain's EU referendum in June, and a possible "Brexit" as a risk to the global economic outlook.

"There's many reason I think some uncertainty will continue increase. … economic development in advanced economies faces a slowdown risk and also geopolitical conflict. And in the UK, there's the referendum, refugee issue. So certainly we support a very strong, unified EU," he said.

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