How’s China doing in tackling its growing debt problem? Not great, according to one of the world’s top credit rating agencies.
Moody’s Investors Service on Wednesday downgraded China’s sovereign debt one notch to A1, the agency’s fifth-highest rating. It’s the first time Moody’s has cut the country’s credit rating since 1989.
China’s financial health will “erode somewhat over the coming years, with economy-wide debt continuing to rise as potential growth slows”, the rating agency said in a statement.
