S&P affirms ratings on Cambodia, holds China at 'AA-/A-1+'

~~SINGAPORE - Standard & Poor's has affirmed its unsolicited 'B' long-term and 'B' short-term sovereign credit ratings on Cambodia, saying the outlook on the long-term rating remains stable. “At the same time, we affirmed our unsolicited 'axBB-' long-term and 'axB' short-term ASEAN regional scale ratings on Cambodia. Our transfer and convertibility (T&C) assessment remains 'B+'.”

S&P says the ratings on Cambodia take into account the country's low income and narrowly-based economy, centralised political and non-transparent policymaking environment, and a highly dollarised financial system. “These constraints are weighed against healthy growth prospects, substantial donor engagement, which enables Cambodia to maintain a low debt and interest burden, and an adequate external position.”
S&P has also affirmed its 'AA-' long-term and 'A-1+' short-term sovereign credit rating on China. The agency says the outlook on the long-term rating is stable, and in line with this, it is affirming its Greater China regional scale rating at 'cnAAA/cnA-1+'. “Our transfer and convertibility (T&C) assessment is 'AA-'.”
S&P says efforts toward deepening structural and fiscal reforms are likely to continue, given the Government's recent policy announcements. S&P projects per capita real GDP growth in 2013-2016 at 6.7%, less than the 8.6% average rate of the previous five years, and says it expects China's high domestic savings to be more than sufficient to fund strong investment spending in the near future. www.standardandpoors.com (ATI).