China's long-term sovereign credit rating were raised today by Standard & Poor's Ratings Services to AA- from A, since the Chinese government was able to properly handle the financial crisis and not fall a victim to the debt crisis. While the short-term credit rating remained at A-1.

We believe the Chinese authorities would respond to future threats to financial stability with timely measures, based on our observations over the past two years, S&P credit analyst Kim Eng Tan said.

According to S&P, this decision reflects China's ability to improve its fiscal position and growth prospects, as the country is believed to be able to absorb potential balance-sheet losses because of its substantial foreign reservesand growth potentials.