Moody’s Downgrades China’s Credit Outlook From Stable To Negative – Full Text
by Tyler Durden
ZeroHedge.com
03/01/2016
It is likely just a coincidence that just a month after we reported that China’s real debt/GDP was far greater than the 280% or so accepted conventionally, and was really up to 350% if not higher after the recent record loan issuance surge, moments ago Moody’s officially downgraded its outlook of China’s credit rating from stable to negative, citing three key risks: 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 implement reforms – given the scale of reform challenges – to address imbalances in the economy.
The Rest…HERE
