Moody’s cuts China’s rating

Beijing, May 24 

Moody’s today downgraded China’s credit score, warning that economy-wide debt is expected to rise as potential economic growth slows over the coming years.

It lowered China’s long-term local currency and foreign currency issuer ratings to A1 from Aa3, but said its outlook changed from “negative” to “stable”. “The downgrade reflects Moody’s expectation that China’s financial strength will erode somewhat over the coming years, with economy-wide debt continuing to rise as potential growth slows,” it said. — AFP