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China Credit Outlook Cut to Negative From Stable by Moody's | Tony Seruga
Mar
01

China Credit Outlook Cut to Negative From Stable by Moody’s

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  • Moody’s cites rising debt, falling reserves, reform doubts
  • Communist Party leaders poised to map out five-year plan

China’s credit-rating outlook was lowered to negative from stable at Moody’s Investors Service, which highlighted the country’s surging debt burden and questioned the government’s ability to implement reforms just days before leaders gather to approve a five-year road map for the economy.

The government’s financial strength may come under pressure if it takes on liabilities from troubled state-owned companies, while capital outflows have limited policy makers’ scope to stimulate the weakest economy in a quarter century, the ratings company said in a statement on Wednesday. State intervention in equity and foreign-exchange markets has heightened uncertainty about the leadership’s commitment to reforms, Moody’s said…

China Credit Outlook Cut to Negative From Stable by Moody’s

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