Moody’s cuts China credit outlook to negative as economy slows

Moody’s said China faced risks from a slowing economy and a crisis in its property sector. Photograph: Wang Xiang/AP

China’s ability to repay its government borrowing has been downgraded by the credit rating agency Moody’s, which said the ripple effects from a crisis in the property sector would undermine efforts to revive its flagging economy.

Moody’s warned that Beijing would need to bail out local and regional governments and state-owned enterprises that were struggling with rising debts, hampering efforts to boost investment and growth.