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+