China calls S&P downgrade a 'wrong decision'

BEIJING - China's Ministry of Finance (MOF) on Friday said it was a "wrong decision" for Standard & Poor's (S&P) to cut China's sovereign credit rating.

The ministry said on its website that the decision was "perplexing" as the downgrade came while China's economic growth had gained a firmer footing with improving quality as the country continues to push supply-side structural reform.

S&P lowered China's sovereign credit rating by one notch to A+ from AA-, citing economic and financial risks from its fast credit growth.

Calling it "cliche," the MOF said it was a pity for S&P to focus on China's fast credit growth and debt issues, but ignore the country's distinctive financing structure, the wealth-creating effect of the government's spending and its support for growth, as well as the sound development fundamentals and growth potential.

"The downgrade is a result of the international rating agencies' long-standing mode of thinking, and misreading of the Chinese economy based on developed countries' experiences," it said.