Moody's affirms China's A1 rating, maintains stable outlook

The global rating agency Moody's has affirmed China's credit rating at "A1" and maintained its stable outlook.

The core strengths of China's credit profile, particularly its high economic strength and robust fiscal strength, are likely to remain in the medium term, Moody’s said in a statement on August 29, according to Anadolu Agency. 

"At the same time, China's institutional and governance strength will be tested, including the quality of executive institutions, to manage a complex set of policy issues including enhancing productivity, reducing leverage, and creating an environment in which the property sector can foster sustainable growth and wealth accumulation, promoting environmental sustainability and maintaining social stability," it added.

Moody's said it expects the world's second-largest economy to grow 3.5% in 2022 and 4.8% next year.

It pointed out that over the longer term, China's growth potential will slow down due to population ageing.

However, Moody’s said, China’s high economic strength will remain, supported by rising income levels and strong global competitiveness.