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Moody's changes outlook on China's Aa3 government bond rating to negative from stable; affirms Aa3 rating
Moody's Investors Service has today changed the outlook to negative from stable on China's government credit ratings, while affirming the Aa3 long-term senior unsecured debt, issuer ratings, and (P)Aa3 senior unsecured shelf rating. The key drivers of the outlook revision are: 1. The ongoing and prospective weakening of fiscal metrics, as reflected in rising government debt and in large and rising contingent liabilities on the government balance sheet. 2. A continuing fall in reserve buffers due to capital outflows, which highlight policy, currency and growth risks. 3. Uncertainty about the authorities' capacity to ... (full story)