Moody's Downgrades China Growth Outlook on Property Woes, Sees Rising Bailout Risks
• Moody's downgraded its outlook on Chinese sovereign debt from stable to negative due to rising risks from the property sector crisis and slowing economy • The rating agency warned that local governments and state-owned enterprises may need bailouts, straining public finances • China's growth prospects have weakened more than expected due to the property sector downturn and demographic headwinds • Moody's expects China's economy to grow just 4% annually in 2024-2025, well below the pre-pandemic 6-7% pace • The negative outlook signals increased risk of an actual downgrade of China's credit rating in future from the current A1 level