Credit FAQ: Chinese Local Government Debt Is In The Spotlight Once Again Jul 11

Standard & Poors, July 2011

Abstract
Local government debt concerns in China (AA-/Stable/A-1+; cnAAA/cnA-1+) have intensified yet again. This is not a new worry (see "Is Chinese Public Finance As Good As It Looks?", published Sept. 4, 2006, and "Credit FAQ: How Big A Worry Are Chinese Local Government Debts?", published March 14, 2010, on RatingsDirect on the Global Credit Portal). Many have expected nonperforming loans at banks to soar since 2009, when lending growth took off. In late 2009, local government-owned companies known as financing platforms or LGFPs became the center of attention as a major source of credit risk to banks. Chinese local governments at all levels had set up LGFPs to carry out public projects such as urban infrastructure and utilities. In the...

Companies mentioned in this report are: China (People's Republic of )

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.

China (People's Republic of )

Customers who bought this item also bought

• Developing Winning Strategies To Attract Postgraduate Students From China - Summary Report / International Students: Maximising the Potential from China - Segmenting Postgraduates from China
• Economic 360 for China: Growth Prospects and Emerging Opportunities in the Aerospace Industry
• Research on China’s K12 Tutoring Market, 2011-2015
• Future of the Chinese Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2018
• China Aged Care Service Industry Report, 2011-2012
• China Aged Care Service Industry Report, 2011-2012
• China Education Industry Outlook to 2012 - Evolving Hong Kong Higher Education Sector
• Research Report on Chinese Securities Industry, 2009
• Research on Online Education and Training Market in China, 2012-2017
• The Chinese Defense Industry: Market Opportunities and Entry Strategies, Analyses and Forecasts to 2017