The cost of insuring Chinese sovereign debt against default using credit default swaps extended a gain that had begun earlier on April 3, jumping to the highest level in more than two months.
Fitch Ratings downgraded China’s sovereign rating on concerns over weakening finances and rising public debt, just one day after the US imposed higher tariffs on the country.
The cut takes China’s long-term foreign currency default rating to "A" from "A+" with a stable outlook, Fitch said in a statement on April 3. China’s Finance Ministry responded with a strong rebuke, describing the decision as biased and not reflective of reality.
