Moody's has commented on its negative outlook for China, warning that tensions with major trading partners could have a long-term negative impact on its credit profile. The agency affirmed China's rating at A1, which it revised to "negative" instead of "stable" in December 2023.
Moody's said China's negative outlook had changed, shifting away from concerns about domestic government debt and the strength of state-owned enterprises. According to Moody's, these risks have now receded after coordinated government policy, and no longer significantly affect China's A1 rating.
Fitch downgraded China's sovereign credit rating by one notch to A, warning of a rapid rise in debt and deteriorating public finances.
Source (Al-Khaleej Emirati Newspaper, Edited)
