Moody’s Cuts China Credit Outlook to Negative on Rising Debt
- China stepped up usage of fiscal stimulus to aid growth
- Such move put downside risks to nation’s economy: Moody’s
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Moody’s Investors Service cut its outlook for Chinese sovereign bonds to negative, underscoring deepening global concerns about the level of debt in the world’s second-largest economy.
Moody’s lowered its outlook to negative from stable while retaining a long-term rating of A1 on the nation’s sovereign bonds, according to a statement. China’s usage of fiscal stimulus to support local governments and its spiraling property downturn is posing risks to the nation’s economy, the grader said.