Moody’s downgraded its outlook on China’s credit rating to negative from stable on Tuesday, citing risks related to “structurally and persistently lower medium-term economic growth” and ongoing troubles in its property sector. The lowering of its outlook does not automatically mean the ratings agency will downgrade China’s creditworthiness, but it increases the chances. Moody’s said the change reflects rising evidence that the authorities will provide financial support to cash-strapped local governments and state-owned enterprises, “posing broad downside risks to China’s fiscal, economic and institutional strength.” (full story)