Moody's cut China's credit outlook to negative on rising debt risks
Publishing timestamp: 2023-12-05 05:14:41
Summary
Moody's has downgraded its outlook on China's government credit ratings to negative from stable. They expect that Beijing's support and possible bailouts for distressed local governments and state-owned enterprises will diminish China's fiscal, economic, and institutional strength. However, Moody's retained China's "A1" long-term rating on the country's sovereign bonds. The downgrade reflects concerns over rising debt levels and the impact on broader growth in the world's second-largest economy. China's Finance Ministry expressed disappointment with Moody's decision.
Sentiment: NEGATIVE
Tickers: MCO,
Keywords: economic events, asia economy, beijing, china, moody's corp, business news,