Rating agency “Moody's” downgraded its outlook for Chinese government credit ratings to "negative" from "stable," linking its move to lower medium-term economic growth and risks from a major correction in the country's huge real estate sector.
The agency affirmed China's long-term domestic and foreign currency issuer ratings at A1, expecting annual GDP growth to slow to 4.0 percent in 2024 and 2025 and an average of 3.8 percent from 2026 to 2030.
According to “Moody's”, the cut reflects growing evidence that authorities will have to provide financial support to heavily indebted local governments and state companies, posing wide-ranging risks to China's financial, economic, and institutional strength.
Source (Al-Sharq Al-Awsat Newspaper, Edited)
