Chinese officials and state media are on the offensive after credit agency Moody¡¯s downgraded its outlook for China¡¯s credit rating from stable to negative.
On Tuesday, the agency forecast slowing growth in the coming years, in part due to China¡¯s aging population, and said that the need for bailouts and government support could weigh on the country¡¯s economic strength. While Moody¡¯s downgraded the outlook, it retained China¡¯s A1 rating, meaning there is a low credit risk.
Downgrading an outlook indicates that the nation¡¯s rating might slip in the future. In November, Moody¡¯s cut its U.S. outlook, citing political polarization as a factor.
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