Chinese Region's Fake Data in Focus After Local Borrower Downgrade

  • Fitch cuts Inner Mongolia High-Grade Highway to BBB- from BBB
  • Creditworthiness assessment of Inner Mongolia was also cut
Residential buildings stand in Baotou, Inner Mongolia, China, on Friday, Aug. 11, 2017. China's economy showed further signs of entering a second-half slowdown, as curbs on property, excess borrowing and industrial overcapacity began to bite.Photographer: Qilai Shen/Bloomberg
Lock
This article is for subscribers only.

A local state-owned company in China’s Inner Mongolia, a region that recently admittedBloomberg Terminal having inflated key economic data, has suffered a credit rating downgrade.

Fitch Ratings cut Inner Mongolia High-Grade Highway Construction and Development Co.’s long-term foreign- and local-currency issuer default rating to BBB- from BBB, citing the local government’s revision of its fiscal figures, according to a statement late Thursday. That follows its downgrade of an internal assessment of the creditworthiness of the Inner Mongolia region, the statement said.