Moody’s cuts China rating citing rising debt, slowing growth

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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.

In this photo taken Tuesday, May 23, 2017, Chinese women past by a poster with the word “The New Normal” at a art district in Beijing, China. Credit rating agency Moody’s has cut its credit rating for China, Wednesday, May 24, 2017, citing slowing economic growth and rising debt that it says will erode the country’s financial strength. (AP Photo/Ng Han Guan)
Delivery men gets briefed before lunch hour on the streets of Beijing, China, Wednesday, May 24, 2017. Credit rating agency Moody’s has cut its credit rating for China, citing slowing economic growth and rising debt that it says will erode the country’s financial strength. (AP Photo/Ng Han Guan)
In this photo taken Tuesday, May 23, 2017, a worker install light bulbs at a cafe undergoing renovation in Beijing, China. Credit rating agency Moody’s has cut its credit rating for China on Wednesday, May 24, 2017, citing slowing economic growth and rising debt that it says will erode the country’s financial strength. (AP Photo/Ng Han Guan)
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