Research Team at BBH, notes that the S&P has cut the outlook on its AA- rating on China from stable to negative. Key Quotes “Weeks ago, this would likely have caused some shudders. Post-Yellen, markets basically yawned. The agency noted that China’s rebalancing of its economy may be slower than expected, with risks to government creditworthiness gradually increasing. S&P also cut the outlook on its AAA rating on Hong Kong from stable to negative. At the beginning of March, Moody’s cut the outlook on its Aa3 (equivalent to AA-) rating on China from stable to negative, citing similar concerns as S&P. For what it’s worth, our own sovereign rating model views China as correctly rated at AA-/Aa3/AA-. Fitch is the outlier at A+. Note that the PBOC fix for USD/CNY today was the low for the year, and the lowest since mid-December.” For more information, read our latest forex news.