China's long-term rating remains at 'A1'.
Moody's has revised its credit outlook for China from stable to negative.
The downgrade reflects concerns over China's rising debt and potential impact on economic growth.
The move by Moody's has led to a slump in China's blue-chip stocks and an increase in the cost of insuring China's sovereign debt against default.
Moody's Investors Service has revised its credit outlook for China from stable to negative, citing concerns over the country's rising debt and the potential impact on economic growth. The change in outlook reflects the growing evidence that Chinese authorities may need to provide more financial support for debt-laden local governments and state-owned firms, which could pose risks to China's fiscal, economic, and institutional strength.
Despite the downgrade, China's long-term rating remains at 'A1'. Moody's expects China's GDP growth to slow to 4% in 2024 and 2025, and average 3.8% from 2026 to 2030. The downgrade reflects the risks related to lower medium-term economic growth and downsizing of the property sector.
The move by Moody's has led to a slump in China's blue-chip stocks and an increase in the cost of insuring China's sovereign debt against default. However, it's important to note that China relies very little on overseas borrowing, and the change in credit outlook will have little direct effect on its finances.
Moody's concerns about China's economy are shared by other credit rating agencies, although S&P has expressed less concern. China's Ministry of Finance pushed back against Moody's downgrade, stating that the Chinese economy is resilient and that local government budgets could withstand the loss of revenue from the real estate downturn.
100%
No Doubts Found At Time Of Publication
95%
What's This
The overall score is a weighted
number that takes
into
account conflict of interest, bias, deception and other practices that undermine
the
credibility of the source. It is calculated as:
(Site Conflicts Of Interest +
Author Conflicts Of Interest) / 2.0 * 0.2 +
ArticleBiasScore * 0.20 +
UniquePointsScore * 0.05 +
DeceptionScore * 0.20 +
ReadabilityScore * 0.05 +
FallacyScore * 0.20
Readability
80%
A score that takes into
consideration the content
for
flow,
interruptions with ads, and overt search engine optimization techniques that
makes
the
content hard to understand
Unique
Points
China relies very little on overseas borrowing, and the change in credit outlook will have little direct effect on its finances. Moody's concerns about China's economy are shared by other credit rating agencies, although S&P has expressed less concern.
Accuracy Deception
(100%)
Fallacies
(100%)
Bias
(100%)
Site
Conflicts
Of
Interest (100%)
Author
Conflicts
Of
Interest (100%)
94%
What's This
The overall score is a weighted
number that takes
into
account conflict of interest, bias, deception and other practices that undermine
the
credibility of the source. It is calculated as:
(Site Conflicts Of Interest +
Author Conflicts Of Interest) / 2.0 * 0.2 +
ArticleBiasScore * 0.20 +
UniquePointsScore * 0.05 +
DeceptionScore * 0.20 +
ReadabilityScore * 0.05 +
FallacyScore * 0.20
Readability
80%
A score that takes into
consideration the content
for
flow,
interruptions with ads, and overt search engine optimization techniques that
makes
the
content hard to understand
Unique
Points
Accuracy Deception
(100%)
Fallacies
(100%)
Bias
(100%)
Site
Conflicts
Of
Interest (100%)
Author
Conflicts
Of
Interest (100%)
94%
What's This
The overall score is a weighted
number that takes
into
account conflict of interest, bias, deception and other practices that undermine
the
credibility of the source. It is calculated as:
(Site Conflicts Of Interest +
Author Conflicts Of Interest) / 2.0 * 0.2 +
ArticleBiasScore * 0.20 +
UniquePointsScore * 0.05 +
DeceptionScore * 0.20 +
ReadabilityScore * 0.05 +
FallacyScore * 0.20
Readability
85%
A score that takes into
consideration the content
for
flow,
interruptions with ads, and overt search engine optimization techniques that
makes
the
content hard to understand
Unique
Points
Accuracy Deception
(100%)
Fallacies
(100%)
Bias
(100%)
Site
Conflicts
Of
Interest (100%)
Author
Conflicts
Of
Interest (100%)
95%
What's This
The overall score is a weighted
number that takes
into
account conflict of interest, bias, deception and other practices that undermine
the
credibility of the source. It is calculated as:
(Site Conflicts Of Interest +
Author Conflicts Of Interest) / 2.0 * 0.2 +
ArticleBiasScore * 0.20 +
UniquePointsScore * 0.05 +
DeceptionScore * 0.20 +
ReadabilityScore * 0.05 +
FallacyScore * 0.20
Readability
80%
A score that takes into
consideration the content
for
flow,
interruptions with ads, and overt search engine optimization techniques that
makes
the
content hard to understand
Unique
Points
The move by Moody's has led to a slump in China's blue-chip stocks and an increase in the cost of insuring China's sovereign debt against default.
Accuracy Deception
(100%)
Fallacies
(100%)
Bias
(100%)
Site
Conflicts
Of
Interest (100%)
Author
Conflicts
Of
Interest (100%)
94%
What's This
The overall score is a weighted
number that takes
into
account conflict of interest, bias, deception and other practices that undermine
the
credibility of the source. It is calculated as:
(Site Conflicts Of Interest +
Author Conflicts Of Interest) / 2.0 * 0.2 +
ArticleBiasScore * 0.20 +
UniquePointsScore * 0.05 +
DeceptionScore * 0.20 +
ReadabilityScore * 0.05 +
FallacyScore * 0.20
Readability
80%
A score that takes into
consideration the content
for
flow,
interruptions with ads, and overt search engine optimization techniques that
makes
the
content hard to understand
Unique
Points
Accuracy Deception
(100%)
Fallacies
(100%)
Bias
(100%)
Site
Conflicts
Of
Interest (100%)
Author
Conflicts
Of
Interest (100%)