Fitch revised China’s rating outlook
International credit rating agency Fitch Ratings confirmed China’s credit rating as “A+” and changed its rating outlook from stable to negative.
Fitch downgraded its long-term foreign currency rating outlook to negative, citing increasing risks to China’s public finance expectations.
In the statement, it was stated that increasing economic uncertainties and efforts to shift the growth model away from one driven by the real estate market have eroded fiscal buffers from a rating perspective.
Credit rating agency Moody’s also downgraded the country’s rating outlook to negative in December last year.
It was stated in the statement that China’s fiscal deficit is expected to increase to 7.1 percent of its gross domestic product (GDP) this year, and that its public debt is expected to increase to 61.3 percent of its GDP.
In the statement, it was stated that China’s economic growth is estimated to slow down from 5.2 percent in 2023 to 4.5 percent in 2024.