Posted 12/5/2023, 3:24:42 PM
Moody's Downgrades China Credit Outlook Amid Slowing Growth and Rising Economic Risks
- Moody's downgraded its outlook on China's credit ratings to negative from stable due to lower growth forecasts and property market risks
- The downgrade reflects expectations that authorities will need to provide more support for local governments and state firms
- Moody's expects China's annual GDP growth to slow to 4% in 2024-2025 and average 3.8% from 2026-2030
- The downgrade adds to existing concerns about China's uneven economic recovery and the need for additional stimulus
- Moody's affirmed China's A1 rating but said risks are rising regarding growth, fiscal metrics, and the downsizing property sector