Chinese media calls Moody's 'biased', govt reacts with restraint
The HinduChinese state media called Moody’s “biased” on Wednesday for its negative rating outlook on the world’s second largest economy, but some analysts said the government’s official reaction was more restrained, signalling Beijing’s own worries about surging debt. After Moody’s and S&P Global’s previous outlook cuts in 2016, then finance minister Lou Jiwei slammed the ratings agencies as “biased” during a G20 meeting. “The finance ministry recognises this, and that it needs to come up with a more professional response than it did before.” While keeping China’s sovereign rating at A1, Moody’s cut its outlook to negative from stable, citing surging local debt and property market woes, conditions which many economists have warned are pushing the economy to Japan-like decades of stagnation. The Communist Party’s tabloid Global Times published an article citing economists saying Moody’s decision was “biased, as it grossly exaggerated or manufactured risks and challenges”.
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Moody’s cuts China credit outlook to negative, cites slowing economic growth, property crisis
Associated Press
Moody’s cuts China’s credit outlook to negative
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