Moody’s lowers China’s credit rating outlook

Ratings agency Moody’s on Tuesday 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. China’s post-pandemic recovery has been hampered by weak consumer and business confidence, a persistent housing crisis, record youth unemployment and a global slowdown that is weighing on demand for the country’s goods. Those woes have piled pressure on central and local governments to step in with more financial support following a one trillion yuan ($137bn) sovereign bond issuance by Beijing in October. Moody’s said Tuesday its decision “reflects rising evidence that financial support will be provided by the government and wider public sector to financially stressed regional and local governments and state-owned enterprises”.