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SOEs not hurt by Moody's rating cut
Aggregated Source: Shanghai Daily: Business

MOST of China's non-financial state-owned firms will not have their ratings affected by Moody's decision to cut the outlook of China's sovereign rating to stable from positive.

As China's sovereign rating remains at Aa3, the change in outlook will not reduce central government support for government-related bond issuers, Ivan Chung, a Moody's vice president and senior credit officer, said in a statement yesterday.

The state-owned enterprises are placed on stable or negative outlook owing to varying degrees of support from the government.

On Tuesday Moody's affirmed Aa3 rating for China's government bonds. The agency attributed the cut in outlook to insufficient progress made by the country in reducing risks in government debt and curbing credit growth.

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Copyright Shanghai Daily: Business