China - Credit Rating

Moody’s Ratings revised China’s sovereign credit outlook from negative to stable while maintaining its A1 rating on Monday, citing expectations that economic and fiscal strength will remain resilient despite domestic, trade, and geopolitical challenges. Although export growth is likely to slow, Moody’s anticipates that the competitiveness and adaptability of Chinese exports will support only a gradual deceleration in GDP growth over the medium term. The agency also highlighted policy focus on investment in high-productivity sectors and better management of supply imbalances to improve capital efficiency, alongside expectations of a controlled approach to regional and local government debt resolution despite rising overall debt driven by ongoing policy support. For comparison, Standard & Poor’s rates China at A+ with a stable outlook, while DBRS’s most recent rating for China is A, also with a stable outlook. In general, a credit rating is used by sovereign wealth funds, pension funds and other investors to gauge the credit worthiness of China thus having a big impact on the country's borrowing costs. This page includes the government debt credit rating for China as reported by major credit rating agencies.