Moody’s Cuts China Banks Outlook After Sovereign Downgrade

(Bloomberg) — Moody’s Investors Service Inc. cut its outlook for eight Chinese banks to negative from stable, a day after unveiling a bearish stance on the nation’s sovereign bonds due to concerns over debt levels.

The rating action for financial institutions including Industrial and Commercial Bank of China Ltd. and the China Development Bank was primarily driven by the change in outlook to negative from stable on the government’s credit ratings, according to a statement from Moody’s on Wednesday.