Moody’s China ratings cut weighs on Asian markets

May 24, 2017, 7:27 AM EDT
(Source: Marco Verch/flickr)
(Source: Marco Verch/flickr)

Amid concerns over China’s sluggish growth and rising debts, Moody’s Investors Services downgraded the country’s credit rating for the first time in more than 25 years. The repercussions of the move were promptly felt across world stocks, which gave away the recent upturn on Wednesday trade.

A cut on China’s credit score would make borrowing costlier for Beijing, writes the BBC. Chinese foreign ministry played down the downgrading, saying that Moody’s failed to take reform efforts into account.

According to Moody’s, China’s growth is likely to slip by 5 percent in the coming years, notes The Guardian.