Ratings agency gives China an A1 long-term rating, citing the economy’s resilience in the face of trade and geopolitical pressures
A leading ratings agency that previously expressed concerns about China’s local debt woes has cast a vote of confidence in the world’s second-largest economy, raising the country’s sovereign credit outlook to “stable” from “negative”.
The agency had dropped China’s sovereign rating from Aa3 to A1 in 2017, its first downgrade for the country in nearly three decades, and lowered its outlook to negative in December 2023.
In rating committee notes released on Monday, Moody’s affirmed China’s long-term rating at A1 – upper-medium investment grade – citing the economy’s resilience in the face of trade and geopolitical pressures.
China’s economic fundamentals had improved and its institutional strength had “materially increased”, it said.
In the first quarter of the year, China posted better-than-expected gross domestic product growth of 5 per cent, defying the impact of energy price increases caused by the blockading of the Strait of Hormuz.
Source: News - South China Morning Post
