Sep 13, 2018 12:04 PM

S&P, Moody’s Downgrade 11 Chinese Local Government Financing Vehicles

Photo: VCG
Photo: VCG

Two major global rating agencies separately downgraded a combined 11 Chinese local government financing vehicles (LGFVs) Wednesday on expectations that local governments’ extraordinary support for their respective financing platforms will weaken.

The downgrades reflect a belief that the Chinese central government’s deleveraging efforts will gradually weaken the financial vehicles’ roles and links with the local and regional governments.

You've accessed an article available only to subscribers
Share this article
Open WeChat and scan the QR code
Copyright © 2017 Caixin Global Limited. All Rights Reserved.