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

By Tuba Sahin

ANKARA (AA) - Moody's has affirmed China's credit rating at 'A1' and maintained its stable outlook, the global rating agency said on Monday.

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.

"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, 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 due to population ageing.

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