Leadership is the wise use of power. Power is the capacity to translate intention into realty and sustain it.---Warren G. Bennis
Wednesday, March 2, 2016
Moody's Investor Service has lowered the outlook on China from stable to negative
Moody's Investors Service has lowered the outlook on
China's credit rating from stable to negative, citing a weakening of
fiscal metrics and a continuing fall in foreign exchange reserves.
"Without credible and efficient reforms, China's GDP growth would slow
more markedly as a high debt burden dampens business investment," the
ratings agency added. Moody's current Aa3 rating on China is still seven
notches above junk, so even if the agency were to follow up on its
warning, investors wouldn't have to suddenly start selling the country's
bonds. The Shanghai Composite shrugged off the decision along with
other Asian shares, climbing 4.3%, after yesterday's record run on Wall Street.