China may lose its A1 rating - UOB

Analysts at UOB noted that two days after downgrading China’s rating, Moody’s said on Fri that China may lose its A1 rating if there are signs that debt is growing at a pace that exceeds its expectations.

Key Quotes:

"The rating agency said that China’s structural reforms will slow but is unlikely to stop the build-up in debt and a worsening situation could trigger a further credit rating cut."

"Conversely, the success of structural reforms in the curbing of leverage without increasing risks in the banking and shadow banking sector will be credit-positive."