CX Daily: China regrets Fitch’s downward revision of its outlook

Fitch /

China regrets Fitch’s downward revision of its outlook

China’s finance ministry said it regrets Fitch Ratings’ downward revision of its outlook for the country, adding that the ratings agency’s criteria can’t effectively reflect fiscal policy’s positive role in driving the nation’s economic growth and stabilizing its debt-to-GDP ratio.

The revision from stable to negative — regarding the rating outlook on China as a long-term foreign-currency debt issuer — was based on rising risks to the country’s public finances amid economic uncertainties and “a transition away from property-reliant growth to what the government views as a more sustainable growth model,” Fitch said in a Tuesday commentary.