Fitch changes China's rating outlook from 'stable' to 'negative'

Fitch affirmed China's long-term issuer default rating (IDR) at A+, while changing its outlook to negative from stable.

Report informs via Interfax that the downgrade of the rating outlook in the agency's press release is due to increased risks to China's financial condition amid growing uncertainty in the economic outlook. Fitch experts explain this uncertainty by the fact that the country's economy, with the growth largely supported by a boom in the housing market, is moving towards a new development model that the government considers more sustainable.

Fitch expects fiscal policy to play an increasingly important role in supporting economic growth in the coming years, leading to a sustained increase in debt leverage.

China's A+ rating is supported by the country's large and diversified economy, its strong growth prospects and important role in global trade.