Moody's changes outlook on China's AA3 government bond rating to negative from stable; affirms AA3 rating

via Reuters

More:

  • Outlook revision reflects ongoing and prospective weakening of fiscal metrics, as reflected in rising government debt
  • Outlook revision reflects continuing fall in reserve buffers due to capital outflows, which highlight policy, currency, growth risks
  • China's fiscal, foreign exchange reserve buffers remain sizeable, giving authorities time to implement some reforms, gradually address imbalances
  • Outlook revision reflects uncertainty about authorities' capacity to implement reforms , to address imbalances in the economy
  • Although GDP growth is slowing, it will remain markedly higher than most of China's rating peers
  • Expect a gradual economic slowdown, made possible by the capacity and willingness of the authorities to support growth

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Oh ... that doesn't sound too good ...

AUD ticking a little lower (insert correlation is not causation etc. here)

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And, a ps. How other agencies see China:

  • S&P are at AA-
  • and Fitch is at A+