Rating agency S&P lowered China's sovereign credit rating Thursday - something they haven't done in almost two decades.
The rating was reduced by just one notch to A+ from AA-.
The reason? Increasing debt.
China's debt as a percentage of GDP stood at 260% at the end of 2016, compared to 240% at the end of 2015, according to Bloomberg data.
Stocks in China didn't react much to the news, but worries about China, now the world's second largest economy, have sparked market volatility in recent years.
You may remember the first week of January 2016 - stocks had their worst start to a New Year ever, with the S&P 500 falling 4.5% that week, amid fears of a slowing China economy.
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