Ratings agency Standard and Poor's downgraded a significant number of Chinese oil and infrastructure companies on Friday, just a day after downgrading the country's credit rating outlook.
Twenty so-called "government related corporate and infrastructure entities," or GREs, saw their outlooks revised because, S&P said in a press release "we believe their credit profiles are affected by their importance and strong links with the Chinese central government."
China National Offshore Oil Corporation, China National Petroleum, China Petrochemical Corporation were among those that had their outlooks downgraded from "stable" to "negative" although the outlook ratings of 31 other GREs were unaffected.
The downgrades come hot on the heels of S&P's decision on Thursday to downgrade China and Hong Kong's credit rating outlook to "negative" from "stable," citing increasing economic and financial risks to the mainland government's creditworthiness.
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