Moodys cuts China credit outlook to negative on debt concerns
Moody’s has cut its outlook for China’s government bonds to negative from stable as the credit rating agency Moody expressed worries the country’s rising debts and slowing economy.
The agency said Beijing will need to provide financial support to “financially-stressed regional and local governments and State-Owned Enterprises”, posing downside risks to China’s fiscal, economic and institutional strength.
Moody's also pointed to major changes in the country's troubled property sector, calling it “a major structural shift in China’s growth drivers”, and could be a more significant drag to China’s overall economic growth rate than expected.
Reporting by Frank Prenesti for Sharecast.com