Chinese Banks Are Latest to Dispute S&P Ratings Cut

Chinese banks came to their own defense after becoming collateral damage in last week’s Standard & Poor’s Global Ratings downgrade of the country’s sovereign debt.

After cutting the credit ratings on China by one notch to A+ on concern of rising economic and financial risks after years of credit-fueled growth, S&P moved to lower its ratings on Chinese lenders, as well as the China units of some foreign lenders. The cut was to reflect the banks’ default risks if the government fails to make payments on its sovereign debt, the agency said.