Fitch Cuts China Outlook to Negative on Steady Rise in Debt
- Rating firm keeps A+ rating, sees more borrowing amid slowdown
- Markets unfazed while Beijing criticizes Fitch decision
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Fitch Ratings revised China’s outlook to negative from stable, saying the government is likely to pile on debt as it seeks to pull the economy out of a real estate-driven slowdown.
Growing uncertainty about the outlook for the world’s second-biggest economy, amid Beijing’s drive to make growth less dependent on housing, “could keep debt on a steady upward trend,” Fitch said on Wednesday.