China’s credit rating downgraded over debt fearsAFP, BEIJINGRatings agency Moody’s yesterday downgraded the outlook on China’s credit rating to “negative” from “stable” on the back of rising debt in the world’s second-largest economy. The move “reflects the increased risks related to structurally and persistently lower medium-term economic growth and the ongoing downsizing of the property sector,” it added. China’s vast property sector is mired in a deep debt crisis, with some of the nation’s biggest developers owing hundreds of billions of dollars and facing bankruptcy. Construction and real estate account for about a quarter of China’s GDP. The Chinese Ministry of Finance said it was “disappointed with Moody’s decision.”“Moody’s concerns about China’s economic growth prospects and fiscal sustainability are unnecessary,” a ministry spokesperson said, adding that China’s macroeconomy has continued to recover.
