{"id":309994,"date":"2017-05-27T02:44:48","date_gmt":"2017-05-27T01:44:48","guid":{"rendered":"http:\/\/rinf.com\/alt-news\/newswire\/moodys-downgrades-chinas-debt-rating\/"},"modified":"2017-05-27T02:44:48","modified_gmt":"2017-05-27T01:44:48","slug":"moodys-downgrades-chinas-debt-rating","status":"publish","type":"post","link":"http:\/\/rinf.com\/alt-news\/newswire\/moodys-downgrades-chinas-debt-rating\/","title":{"rendered":"Moody\u2019s downgrades China\u2019s debt rating"},"content":{"rendered":"<div id=\"content\">\n<h3 class=\"nomargin\">\u00a0<\/h3>\n<h2>Moody\u2019s downgrades China\u2019s debt rating<\/h2>\n<h5>\n<p>    By<br \/>\n    Nick Beams<br \/>\n    <br \/>26 May 2017<\/p>\n<\/h5>\n<p>The downgrading of Chinese sovereign debt by the credit rating agency Moody\u2019s has underscored the dilemmas facing the regime of Xi Jinping as it tries to maintain economic growth on the one hand and comply with the demands of international financial capital to reduce its debt levels and open up its financial system on the other.<\/p>\n<p>On Wednesday Moody\u2019s reduced its rating of Chinese debt by a notch from Aa3 to A1, its fifth highest rating, in the first such downgrade since 1989. At the same time, it softened the blow somewhat by changing its outlook from \u201cnegative\u201d to \u201cstability.\u201d<\/p>\n<p>The news, which initially saw a fall in markets before they staged a recovery, brought an immediate reaction from the Chinese finance ministry. It stated Moody\u2019s had \u201coverestimated the difficulties faced by China\u2019s economy and underestimated the government\u2019s ability to deepen reforms.\u201d The agency, the foreign ministry continued, had not given sufficient credit for the \u201csteady upward momentum\u201d for growth, with stronger than expected results in the first quarter, and the year\u2019s \u201cstrong beginning\u201d showing the \u201cachievement of China\u2019s reforms.\u201d<\/p>\n<p>In its statement on the downgrade, Moody\u2019s said that economy-wide debt, which includes that of state-owned enterprises, would continue to rise, notwithstanding reforms to the financial system, as the growth potential of the Chinese economy slowed.<\/p>\n<p>\u201cWhile ongoing progress on reforms is likely to transform the economy and financial system over time, it is not likely to prevent a further material rise in economy-wide debt, and the consequent increase in contingent liabilities for the government.\u201d<\/p>\n<p>It said the government\u2019s direct debt burden would rise to&#8230;<\/p>\n<\/div>\n<p><a href=\"http:\/\/www.wsws.org\/en\/articles\/2017\/05\/26\/chin-m26.html\">Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u00a0 Moody\u2019s downgrades China\u2019s debt rating By Nick Beams 26 May 2017 The downgrading of Chinese sovereign debt by the credit rating agency Moody\u2019s has underscored the dilemmas facing the regime of Xi Jinping as it tries to maintain economic growth on the one hand and comply with the demands of international financial capital to [&hellip;]<\/p>\n","protected":false},"author":2526,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[519],"tags":[],"class_list":{"0":"post-309994","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-newswire"},"_links":{"self":[{"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/posts\/309994","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/users\/2526"}],"replies":[{"embeddable":true,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/comments?post=309994"}],"version-history":[{"count":0,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/posts\/309994\/revisions"}],"wp:attachment":[{"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/media?parent=309994"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/categories?post=309994"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/tags?post=309994"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}