International rating agency Fitch has affirmed China’s long-term foreign currency Issuer Default Rating (IDR) at ‘A+’ with a ‘stable’ outlook.

“China’s ratings are supported by the country’s strong external financial position, the sustainability of its macroeconomic performance, and the size of its economy, which is the second largest in the world,” Fitch said in a press release.

Among the constraining factors, the agency’s experts note the risks to fiscal and macro-financial stability associated with high levels of debt in the non-government sector, as well as the fact that the country’s per capita income is lower than in other countries with comparable ratings.

Fitch’s forecast for 2022 assumes that the PRC economy will grow by 4.3% after climbing by 8.1% in 2021. However, the agency’s analysts believe that the country’s economic growth rate this year may be weaker than expected as quarantine restrictions are being lifted rather slowly.