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China says Moody's downgrade overestimates difficulties facing its economy
May 24, 2017 / 5:17 AM / 6 months ago

China says Moody's downgrade overestimates difficulties facing its economy

BEIJING (Reuters) - China’s finance ministry said on Wednesday that a credit downgrade by Moody’s was based on inappropriate methodology, saying it was exaggerating difficulties facing the economy and underestimating reform efforts.

FILE PHOTO: A female migrant construction worker walks into her dormitory near newly-built residential apartments in Shanghai August 12, 2013. REUTERS/Aly Song/File Photo

Moody’s Investors Service downgraded China’s credit ratings by one notch earlier on Wednesday, saying it expects the financial strength of the world’s second-biggest economy will erode in coming years as growth slows and debt continues to rise.

The ministry said China’s government debt will rise at a reasonable pace and rising debt levels from local government financing vehicles and state-owned enterprises (SOEs) will not add to existing government debt.

Reporting by Yawen Chen and Ryan Woo; Editing by Kim Coghill

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