Moody’s lowers outlook for China

BEIJING: Moody's Investors Service affirmed the China government's bond rating of Aa3 but cut the outlook to stable from positive, the second pessimistic revision by a foreign ratings agency this month.

Last week, Fitch Ratings cut China's long-term local currency credit rating to A-plus from AA-minus, citing concerns over the risk that excessive local government borrowing posed to the wider economy. Moody's referred to the same issue in justifying its negative revision.