"The downgrade reflects Moody's expectation that China's financial strength will erode somewhat over the coming years, with economy-wide debt continuing to rise as potential growth slows", Marie Diron, the agency's associate managing director for sovereign risk, wrote in Wednesday's statement.
The downgrade adds to warnings about China's reliance on credit to propel growth after the 2008 global crisis.
The news of the downgrade in China's long term local currency rating - one notch to an A1 rating from AA3 saw Chinese stockmarkets sell off by 1% for a while before they recovered, while the Australian dollar dropped by around 0.3% before steadying to trade around 74.50 USA cents. While the move brings Moody's in line with rival agency Fitch, which has had an equivalent A+ rating on China since November 2007, Standard & Poor's recently upgraded China's rating to AA-, which is one notch above Moody's new rating.
Moody's Investors Service yesterday slashed China's credit rating for the first time in nearly three decades, citing concerns about the country's rising debt and slowing growth, but Beijing rejected the downgrade as "inappropriate".
"We expect direct government, indirect and economy-wide debt to continue to rise, signaling an erosion of China's credit profile", Moody's said in a statement.
The Chinese finance ministry claimed Moody's had painted an inaccurate picture of the country's financial outlook.
China's total non-government debt is estimated to have climbed from 170 per cent of gross domestic product in 2007 to 260 per cent by 2016.
Communist leaders have cited reducing financial risk as a priority this year. But private sector analysts say they are moving too slowly.
World markets have not been hit particularly hard, although there was a small sell-off of Chinese stocks which saw the Shanghai Composite Index dip almost 1 per cent in Asian trading.
China's Finance Ministry today dismissed a credit downgrade by Moody's, saying it is based on "inappropriate methodology" and argued that the rating firm has overestimated the difficulties faced by the world's second largest economy. The government is trying to make the economy more productive by giving market forces a bigger role and through "supply side reform", or shrinking bloated industries such as steel and cement in which supply exceeds demand, which has depressed prices and led to financial losses.
The finance ministry noted the growth rate ticked up to 6.9 percent in the quarter ending in March and said tax revenue rose 11.8 percent in the first four months of the year.
China's 13th five-year plan released last year announced an average annual growth rate of more than 6.5 percent for last year to 2020. Beijing has responded by flooding the economy with credit.
Moody's said Beijing's economic reform program won't suffice to offset the rising debt level, given the authorities' tendency to use debt-fueled stimulus to spur growth. "Such stimulus will contribute to rising debt across the economy as a whole".
But Moody's said it expects China's growth potential to decline to close to five percent over the next five years, citing diminishing investment, an accelerated fall in the working age population and a continuing dip in productivity.
It is far below cuts from OPEC at a time when demand is likely to keep growing strong, said Justin Jenkins, analyst at the firm. Non-OPEC nations Oman and Mexico also confirmed their support for prolonging the curbs through the first quarter of 2018.
Pittsburgh's Evgeni Malkin played in his 141st postseason game, surpassing Jaromir Jagr for the most in franchise history. The defenseman who scored just once during the regular season zipped home his second in two games 8:14 into the first.
He was criticised at home for describing France's colonial war in Algeria as a "crime against humanity" and "genuinely barbaric". He also met some of the 1,600 French soldiers stationed there, on the largest French military base outside of France.
It's been nearly two weeks since the incident, and Rebecca said that Kyla's skin is still very red but the blisters have subsided. With the post, she included several photos of her daughter Kyla, who has visible burns to her face as well as a swollen eye.
QUALCOMM Incorporated (QCOM ) belongs to the "Technology" sector with an industry focus on "Communication Equipment", with Dr. ILLEGAL ACTIVITY NOTICE: This story was originally posted by Stock Observer and is the sole property of of Stock Observer.
After Tuesday , the forecast calls for clear skies with highs in the 70s and mid-80s by the end of the week. MONDAY: Few Early Rain Showers, Drying out and Turning Partly Sunny, Breezy, Cooler, High: 62, Low: 51.
The cyber security expert said that it was a less likely scenario for the attack to create chaos by spreading WannaCry . Those tools have evolved, but are what researchers call "variants" of the same tools used in the other attacks.
Financial Tribune reported two days ago some 200 computers in the country were infected by the so-called "ransomware" software. Clearly, their lack of responsibility caused their patients to suffer, and unfairly so.
Then there's the US government, whose Windows hacking tools were leaked to the internet and got into the hands of cybercriminals. As companies and individuals take stock Monday morning, the focus is turning to protecting against further attacks.
The images also show Microsoft sticking with USB 3.0 with the new Surface Pro , eschewing USB-C connections. The latter two are probably going to be sold as optional accessories in black, blue, red and silver colors.
Adams is already en route to Atlanta and is expected to start Sunday's series finale against the Nationals. The Braves optioned infielder Johan Camargo to Triple-A Gwinnett to clear a roster spot for Adams.
After his address, Pence stood on the platform and shook hands as each graduate passed after being handed their diplomas. Jaskowski said he hopes those protesting Pence's invitation still listen to what the vice president has to say.
China to address implementation of Paris Agreement
Taking into account the economic benefits of avoiding climate change impacts such as flooding, that number goes up to nearly . And the world's most vulnerable countries reminded us that no country can be "great" without increased climate action.
NFL To (Finally) Loosen Celebration Penalties
Now the interesting part will be whether owners - a group which skews rather older than players - are willing to go along. May 23, 2017Prolonged acts, miming weapons, offensive gestures, sexually suggestive stuff still expected to be banned.
Nike Announces New Collection of Apple Watch Bands
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London calling: Scots shine at Twickenham
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Gunman revealed in shooting of six-year-old
David Archie said, "You can't continue to do what has taken place and that's taking the lives of 6-yearolds, 20-year-olds". Kingston Frazier was kidnapped early Thursday morning from the parking lot of the Kroger on I-55 in Jackson .
Price Target Analysis Novavax, Inc. (NVAX)
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Pippa Middleton's wedding to James Matthews sealed with a kiss
The bride and groom emerged from the church following a service that lasted around 45 minutes - and were blessed by the weather. Pippa Middleton is the second of three children, a year younger than Kate and four years older than businessman James.