Moody's downgrades China rating for first time in 30 years
Moody's said that China's financial strength could be diminished in years to come as rising debt continues to drag on its prospects.
China was downgraded to A1 from Aa3, the first downgrade it has been hit with since 1989.
"The downgrade reflects Moody's expectation that China's financial strength will erode somewhat over the coming years, with economy-wide debt continuing to rise as potential growth slows," the ratings agency said in a statement.
The Chinese finance ministry dismissed the credit downgrade in a statement, saying that Moody's was overestimating threats to its economic growth.
"Moody's views that China's non-financial debt will rise rapidly and the government would continue to maintain growth via stimulus measures are exaggerating difficulties facing the Chinese economy," the statement read. ■