The firm is the latest to raise concern about problems facing the world’s second largest economy.
China said it was disappointed by the move, calling the economy resilient.
China said it was disappointed by the move, calling the economy resilient.
Some of the country’s largest construction companies are facing insolvency and have stopped building, leaving customers stranded.
Local governments, which have borrowed billions to build infrastructure and relied on land sales to bring in revenue, are also under strain.
Moody’s said the expected support for the local governments and other state-owned enterprises presented “broad downside risks to China’s fiscal, economic and institutional strength”.
Absorbing even some of the liabilities would be accompanied by “material costs, which would undermine China’s fiscal strength and potentially its creditworthiness”, it said.
China said it was disappointed by the move, calling the economy resilient.
The firm is the latest to raise concern about problems facing the world’s second largest economy.
Some of the country’s largest construction companies are facing insolvency and have stopped building, leaving customers stranded.
China said it was disappointed by the move, calling the economy resilient.
China said it was disappointed by the move, calling the economy resilient.
Some of the country’s largest construction companies are facing insolvency and have stopped building, leaving customers stranded.
Local governments, which have borrowed billions to build infrastructure and relied on land sales to bring in revenue, are also under strain.
Moody’s said the expected support for the local governments and other state-owned enterprises presented “broad downside risks to China’s fiscal, economic and institutional strength”.
Absorbing even some of the liabilities would be accompanied by “material costs, which would undermine China’s fiscal strength and potentially its creditworthiness”, it said.
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