Moody's: China faces further downgrades unless ballooning credit checked

Reforms not enough

Tom Eckett
clock • 1 min read

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

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

Why the lead-up to the Budget may have been worse than the Budget itself

Why the lead-up to the Budget may have been worse than the Budget itself

What Rachel Reeves and Dr Evil have in common

Laith Khalaf
clock 13 November 2024 • 4 min read
Bank of England meets expectations with 25 basis point rate cut to 4.75%

Bank of England meets expectations with 25 basis point rate cut to 4.75%

'Continued progress' on disinflation

Valeria Martinez
clock 07 November 2024 • 2 min read
'Budget will be a reset for our economy' Reeves tells IMF colleagues

'Budget will be a reset for our economy' Reeves tells IMF colleagues

Autumn Budget on 30 October

Linus Uhlig
clock 24 October 2024 • 2 min read