Moody’s downgrades China’s credit rating outlook to negative

Moody’s downgrades China’s credit rating outlook to negative Moody’s Investors Service has changed the outlook to negative from stable on China’s government credit ratings while affirming China’s A1 long-term local and foreign-currency issuer and senior unsecured ratings and the (P)A1 foreign-currency senior unsecu
Finance
December 5, 2023 13:19
Moody’s downgrades China’s credit rating outlook to negative

Moody’s Investors Service has changed the outlook to negative from stable on China’s government credit ratings while affirming China’s A1 long-term local and foreign-currency issuer and senior unsecured ratings and the (P)A1 foreign-currency senior unsecured shelf rating, Report informs referring to the agency’s website.

The change to a negative outlook reflects rising evidence that financial support will be provided by the government and wider public sector to financially-stressed regional and local governments (RLGs) and State-Owned Enterprises (SOEs), posing broad downside risks to China's fiscal, economic and institutional strength.

The outlook change also reflects the increased risks related to structurally and persistently lower medium-term economic growth and the ongoing downsizing of the property sector.

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