The global ratings agency, Standard and Poor's, says the outbreak of the deadly new kind of pneumonia, Severe Acute Respiratory Syndrome, could severely hurt China's economy.
S&P on Thursday said travel-related businesses and restaurants already are feeling the short-term effects of the epidemic that started in southern Guangdong province. The virus has been carried by travelers to at least 19 countries and territories on four continents.
Kuwait on Thursday became the latest country with a confirmed case.
Mainland China and Hong Kong have reported the highest numbers of infections and deaths. Almost 2800 people worldwide have gotten sick. At least 111 have died, 85 of them in China and Hong Kong. S&P says if the outbreak lingers, Chinese property landlords and real estate developers will be adversely affected. The ratings agency also warns of rising unemployment and bankruptcies.
Its bleak assessment focused on Hong Kong, where the government says it will impose a 10-day quarantine on anyone who comes in contact with a SARS patient. The disease has claimed at least 30 lives and sickened almost 1,000 in the former British colony.
Sudden drops in tourism and domestic consumption threaten to plunge Hong Kong's already weakened economy into recession. Fears of the spreading disease have residents shunning public places where they could become infected. Governments across Asia are imposing new travel restrictions daily.
Despite the negative outlook, S&P said it does not plan any immediate changes in China's corporate credit ratings. Meanwhile Thursday, the Chinese Health Ministry admitted that some patients in Beijing actually may have contracted the disease there. The government's admission contradicted its earlier insistence that all the patients were taken to Beijing for medical care.
Beijing's newly appointed mayor, Meng Xuenong, Thursday declared the capital city a safe place to visit. China's official Xinhua news agency reports Mr. Meng told the president of Toshiba Corporation that SARS is under control in Beijing.
His comments contradict warnings issued Wednesday by the World Health Organization, which questioned whether the government is hiding large numbers of SARS cases in Beijing.
