Moody's Upgrades China's Ratings Outlook To Positive From Stable

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Monday, Moody's Investors Service raised China's ratings outlook to positive from stable in light of the country's resilient, strong and relatively stable macroeconomic performance during the turbulence of the past year. Further, strong credit fundamentals would possibly resume an improving trend as the economy emerges from the effects of the global recession, the rating agency said.

The rating action affects the government's A1 foreign and local currency bond ratings, as well as China's A1 country ceilings for foreign and local currency bank deposits, and for its A1 ceilings for foreign and local currency bonds. The short-term foreign currency rating remained at P-1.

Tom Byrne, Moody's Senior Vice President said, "While the authorities have been orchestrating a huge economic stimulus program in response to the global crisis, the effects on government finances have been modest and do not appear to pose unmanageable risks to the government's very high financial strength."

Separately, Moody's revised the outlook on Hong Kong's Aa2 government bond ratings to positive from stable. The action was prompted by a corresponding move in China's rating outlook to positive.

Monday, Moody's Investors Service raised China's ratings outlook to positive from stable in light of the country's resilient, strong and relatively stable macroeconomic performance during the turbulence of the past year. (Market News Provided by RTTNews)