Why Moody’s has raised China’s credit outlook amid Iran war shocks

A leading ratings agency that previously expressed concerns about China’s local debt woes has cast a vote of confidence in the world’s second-largest economy, raising the country’s sovereign credit outlook to “stable” from “negative”. This week’s move by Moody’s Ratings was closely watched, as energy shocks from the US-Israel war in Iran have exacerbated concerns about the global economy’s trajectory. The agency had dropped China’s sovereign rating from Aa3 to A1 in 2017, its first downgrade ...

By Karen Tian