We Affirmed China's A+ Rating With Stable Outlook, Says Fitch Ratings's Schwartz

The video discusses the economic outlook of the US and China. The US maintains a stable AAA rating due to its significant role in the global economy. In China, the focus is on how authorities manage the economic slowdown without resorting to full-scale credit stimulus, which could reverse deleveraging efforts. The video highlights China's strategic balance between growth and deleveraging, emphasizing policy-driven slowdowns and fiscal measures to support the economy.

What is the current credit rating of the US, and why is it considered stable?

• AA, due to economic challenges

• AAA, because of its global economic role

• BBB, because of the reserve currency status

• A+, due to past downgrades

What is the key concern for China's economic outlook according to the transcript?

• The increase in shadow banking

• The rise in local government financing

• The response of authorities to the slowdown

• The slowdown in infrastructure spending

How have Chinese authorities responded to the economic slowdown?

• By increasing shadow banking activities

• By implementing a full-scale credit stimulus

• By maintaining a stable outlook without stimulus

• By avoiding a full-scale credit stimulus

What was a significant result of the policy-driven slowdown in China?

• Negative year-over-year infrastructure spending

• Decrease in US trade tensions

• Increase in local government financing

• Rise in shadow banking growth

What fiscal measures have been taken by China to stimulate growth?

• Reduction in infrastructure spending

• Increase in shadow banking

• Full-scale credit stimulus

• Tax cuts and increased market liquidity