Moody's affirms China's A1 ratings with a stable outlook

The international rating agency Moody's confirmed China's A1 ratings on Thursday, saying the outlook for the country is stable.

A view of the Port of Qingdao, Shandong Province, June 24, 2019. [File photo: IC]

The agency's report says the government's finance policy is playing an important role in containing the rise of the country's overall economic leverage, and that it's able to mobilize resources to support public sector entities and maintain financial stability.

"... (China's) large fiscal and foreign exchange reserves and the government's control of parts of the economy and financial system lend effectiveness to measures aimed at stemming financial stability risks," Moody's said in a statement.

Moody's expects tensions between China and the United States to continue to oscillate.

The A1 ratings include China's long-term issuer rating, senior unsecured rating, and the (P) A1 foreign currency senior unsecured shelf rating.