5 reasons why Moody’s has downgraded China for the first time in 28 years

SINGAPORE (May 24): For the first time since 1989, Moody’s Investors Service has downgraded China’s long-term local currency and foreign currency issuer ratings to “A1” from “Aa3”, on expectations that the republic’s financial strength will erode somewhat over the coming years due to rising economy-wide debt as potential slows.

China's local currency bond and deposit ceilings, as well as the foreign currency bond ceiling, both remain at Aa3.

While the foreign currency deposit ceiling is lowered to A1 from Aa3, China's short-term foreign currency bond and bank deposit ceilings remain Prime-1 (P-1).

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