China Local-Authority Financing Won't Be `Severe' Problem, Moody's Says
Stock Chart for Moody's Corp (MCO)
China’s local-government financing vehicles won’t create a “severe” problem based on initial analysis by Moody’s Investors Service, said Tom Byrne, a senior vice president of the rating company’s sovereign risk unit.
Moody’s expects any losses from the financing arms to come in 2012-2013 rather than immediately, and any migration to the central government’s balance sheet will be limited, Byrne said at a conference in Shanghai today.
To contact the reporter on this story: Jun Luo in Shanghai at firstname.lastname@example.org
Bloomberg reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions.