Moody's positive on China's bond rating
Source: Xinhua |
May 8, 2013, Wednesday
|
Print Edition
Print Edition
CHINA'S Aa3 sovereign bond ratings are supported by its economic and financial strength, which have not been jeopardized by the country's new era of slower growth, Moody's said yesterday.
The rating agency's outlook for the country's credit rating is stable.
China's economic growth slowed to 7.7 percent in the first quarter, falling short of market hopes and suggested a continued tepid economic rebound for the world's second-largest economy.
"We see China's growth moderating further, but will remain well above global average over a five-year horizon, if not longer," Moody's said in its annual report.
After years of double-digit economic growth, China may have entered a "new norm" of slower growth.
Moody's predicted China's gross domestic product will grow 8 percent this year and 7.5 percent in 2014.
But Moody's viewed the government's financial strength remained very high.
"Underpinning China's credit fundamental is continued robust economic growth against a backdrop of low inflation," Moody's said.
China's strong government's finances are reflected in its small budget deficits, moderate gross financing requirements, and a fair on-budget debt burden slightly under 30 percent of GDP.
The government has considerable assets that can be used to help pay down the debt if necessary.
The rating agency's outlook for the country's credit rating is stable.
China's economic growth slowed to 7.7 percent in the first quarter, falling short of market hopes and suggested a continued tepid economic rebound for the world's second-largest economy.
"We see China's growth moderating further, but will remain well above global average over a five-year horizon, if not longer," Moody's said in its annual report.
After years of double-digit economic growth, China may have entered a "new norm" of slower growth.
Moody's predicted China's gross domestic product will grow 8 percent this year and 7.5 percent in 2014.
But Moody's viewed the government's financial strength remained very high.
"Underpinning China's credit fundamental is continued robust economic growth against a backdrop of low inflation," Moody's said.
China's strong government's finances are reflected in its small budget deficits, moderate gross financing requirements, and a fair on-budget debt burden slightly under 30 percent of GDP.
The government has considerable assets that can be used to help pay down the debt if necessary.
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