China could suffer yet another downgrade from Moody's, as two officials from the ratings agency suggest the country's structural reforms will not be enough to halt rising debt levels.
According to Reuters, senior Moody's official Marie Diron said the ratings agency had been encouraged by China's "vast reform agenda", but it will not be enough to arrest the trend of rising debt. Li Xiujun, vice president of credit strategy and standards at Moody's, added if China's reforms can prevent leverage from rising more effectively without increasing risks in the banking and shadow banking sector, this will have a positive impact on the country's rating. "But if there are signs that China's debt will keep rising and the rate of growth is beyond our expectations, leading to se...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes