12:11 GMT +324 September 2019
Listen Live
    Moody's

    Moody’s Downgrades China Rating Outlook to ‘Negative’

    © AFP 2019 / Emmanuel Dunand
    Business
    Get short URL
    439
    Subscribe

    Moody's rating agency has lowered the outlook on Chinese government debt to "negative" from "stable," citing the incomplete implementation of vital reforms in its statement published Wednesday.

    MOSCOW (Sputnik) – At the same time, Moody's reaffirmed an "Aa3" rating for China's long-term debt as the Asian country's fiscal and foreign-exchange reserves are still sizable, giving hope to tackle economic imbalances.

    "Without credible and efficient reforms, China's GDP growth would slow more markedly as a high debt burden dampens business investment and demographics turn increasingly unfavourable. Government debt would increase more sharply than we currently expect," the rating agency said in the statement.

    The assessment comes days before the National People's Congress (NPC) will vote on China's 13th five-year plan, the country’s social and economic policies for the next half a decade.

    Related:

    September G20 Summit in China to Boost Global Economic Ties - Official
    Chinese Economy Slowdown Makes Business Go Global
    'Shadow CIA': EU Likely to Recognize China’s Market Economy Status by 2017
    Tags:
    rating, Moody's, China
    Community standardsDiscussion
    Comment via FacebookComment via Sputnik