China’s State Firms May Default on More Loans: Moody’s

Loan defaults at China’s state-owned enterprises may increase as growth in the world’s second-biggest economy slows, according to Moody’s Investors Service.

Risks are greatest in industries with excess production capacity, Kai Hu, a senior credit officer at the rating company, said at a conference in Shanghai today. Economic growth will cool from “slightly below 7.5 percent” this year to about 7 percent in 2015, Thomas Byrne, the credit assessor’s head of Asia-Pacific sovereign risk group, said at the gathering.