Kyoya Okazawa, head of global markets, Japan, at BNP Paribas Securities in Tokyo, said Moody’s downgrade of China’s sovereign debt came not entirely out of the blue. Debt fearsOn Wednesday, international ratings agency Moody’s had cut China’s rating by one notch to A1 from Aa3 in its first downgrade of the country in nearly 30 years. The agency said it expected the financial strength of the economy will erode in coming years as growth slows and debt continues to rise. China’s massive debt has been at the center of concerns among economists, and Beijing is walking a fine line as it tries to contain financial risks. Analysts are divided in their opinions on whether or not the downgrade will have a negative impact on these efforts.

Source: Daily News Egypt May 24, 2017 11:36 UTC