Fitch Downgrades China's Credit Outlook Over Rising Debt and Growth Risks

Fitch downgraded China's credit rating outlook to negative due to risks to public finances from slowing growth and rising debt levels
Fitch expects China's government debt to rise to 61.3% of GDP by 2024, up from 38.5% in 2019
China's general government deficit is forecast to reach 7.1% of GDP in 2024, the highest since 2020
Fitch affirmed China's credit rating at A+, but warned a downgrade is possible if growth slows further and contingent liabilities continue rising
The finance ministry said China will take steps to prevent local government debt risks after Fitch's decision