Moody's downgrades China, expecting financial strength to erode as debt rises

Reuters ------- Moody's Investors Services downgraded China's long-term local and foreign currency issuer ratings on Wednesday citing expectations that the financial strength of the world's second biggest economy would erode in the coming years. The ratings agency also changed its outlook for China to stable from negative. The downgrade one notch to an A1 rating from AA3 comes at a time when the Chinese government is grappling with the challenges of slowing economic growth and soaring debt. "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," Moody's said in a statement. To learn more click on the picture below to read the article.