Fitch Downgrades China to Negative on Rising Public Finance Risks

Fitch Downgrades China to Negative on Rising Public Finance Risks
The Fitch Ratings logo is seen at its offices at the Canary Wharf financial district in London, on March 3, 2016. Reinhard Krause/Reuters
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Following Moody’s lowering of China’s credit rating outlook last December, ratings agency Fitch downgraded its China sovereign credit rating to Negative on Tuesday, citing risks to public finances as the economy shifts to new growth models.

Given China’s economic woes in the past two years, while analysts hardly found Fitch’s latest move surprising, the new cut in the ratings outlook, however, highlights increasing concern over debt sustainability.