Analyses | Regional and economic development | 2017-07-12 | HKEJ

The dos and don’ts of interpreting sovereign ratings



The downgrade in China’s long-term local and foreign currency issuer ratings to A1 from Aa3, and the change of outlook to stable from negative by Moody’s, has aroused widespread concern. The credit downgrade has inevitably undermined public confidence in the economic outlook. However, a deeper understanding of the rating mechanism could help minimise unnecessary anxiety.

The full version of the commentary is in Chinese only.