Fitch downgrades China’s outlook over economic worries
CNN
Fitch downgraded its outlook on China’s credit rating on Tuesday, citing increasing risks to its finances as it faces economic challenges.
Fitch downgraded its outlook on China’s credit rating on Tuesday, citing increasing risks to its finances as it faces economic challenges. Lowering its outlook from stable to negative does not automatically mean the ratings agency will downgrade China’s creditworthiness, but it increases the chances. Fitch has kept its rating on Chinese sovereign bonds at A+. The revision “reflects increasing risks to China’s public finance outlook as the country contends with more uncertain economic prospects amid a transition away from property-reliant growth to what the government views as a more sustainable growth model,” it said in a statement. Fitch believes the general government deficit will rise to 7.1% of gross domestic product in 2024 from 5.8% last year. This year’s deficit is expected to be the highest since 2020, when pandemic related controls began to weigh heavily on public coffers. China’s Finance Ministry has expressed “regret” over the revision.
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