How Will Moody’s Downgrade Of China’s Sovereign Rating Impact Its Economy?

Moody’s Investors Service downgraded China’s sovereign rating to A1 from Aa3 today, with a stable outlook. The downgrade comes almost 15 months after Moody’s placed China on negative outlook on March 2, 2016.

Despite China posting better than expected GDP growth during the first quarter, Moody’s decision to downgrade stems from their expectation that China’s debt will continue to rise while potential growth slows, eroding the country’s credit metrics. Moody’s does not see the government’s reforms as fully offsetting the rise in economic and financial risk.

Moody’s downgrade to A1 puts its China's rating on the same level as Fitch’s A+ rating. However, S&P has China one notch higher at AA- with a negative outlook since March 31, 2016. Another downgrade event by another credit rating agency is possible, says an ANZ rese...

This news article comes via , who is the copyright owner of this information and news. has licensed the rights to this article and any republication or re-distribution in whole or in part of this content is strictly prohibited without the express consent of China Money Network

You May Also Like