China Gets Pat on the Back From Moody’s Even as Debt Load Swells

Moody’s Ratings revised China’s credit outlook to stable from negative, an expression of confidence in the economy as the government copes with risks stemming from its swelling debt load.

The upgrade “reflects our assessment that economic and fiscal strength will be resilient to ongoing domestic as well as trade and geopolitical challenges,” Moody’s said in a statement on Monday. “Fiscal pressures will persist, and the government’s debt burden will continue to increase for the foreseeable future but with contained downside risks.”