BEIJING (AP) – China has criticized a decision by the Moody’s rating agency to cut its rating for Chinese government debt and defended Beijing’s finances and economic reforms.
A finance ministry statement complained Moody’s used “inappropriate methods” when it cut Beijing’s credit rating and overestimated the scale of its economic difficulties.
Earlier Monday, Moody’s cited China’s overall rising debt and slowing economic growth in cutting its government’s rating for local currency and foreign borrowing. The rating is still among the agency’s highest but could lead to higher borrowing costs.
The agency warned China’s economy-wide debt is expected to rise further.