1st LD-Writethru: Moody's maintains stable outlook for China A1 ratings
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E-mail Xinhua, July 5, 2019
BEIJING, July 5 (Xinhua) -- Global credit rating agency Moody's has affirmed China's ratings at A1 with a stable outlook.
The A1 ratings include China's long-term issuer rating, senior unsecured rating, and the (P) A1 foreign currency senior unsecured shelf rating, Moody's said in a statement.
Chinese authorities have the financial and policy means to contain the rise in leverage and mobilize resources to support stressed public sector entities and maintain financial stability, according to Moody's assessment.
Moody's pointed out that the Chinese government's commitment to reducing leverage remains clear, citing rapid shrinking of the shadow banking sector and deleveraging in parts of the state-owned enterprise sector in 2017 and the first half of 2018, and overcapacity cuts in the steel and coal sectors.
The derisking of the financial system contributes to greater transparency and reduces the risk of contagion from financial weak shadow banks to banks, according to Moody's.
China's policy emphasis has moved towards greater quality of growth, including environmental and social objectives, and a reduced emphasis on the level of growth, Moody's observed. Enditem
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