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BIZCHINA / News |
China's debt rating upgraded by Moody's to A1(Bloomberg)
Updated: 2007-07-26 13:04 China's debt rating was upgraded by Moody's Investors Service, citing the country's swelling foreign-currency reserves, surging exports and improvements to the banking system. The country's long-term foreign-currency rating jumped to A1, the fifth-highest ranking, from A2, the ratings company said in a statement today. "Official foreign exchange reserves continue to grow and now exceed $1.3 trillion, and external obligations of the government and State-owned banks are a small fraction of that sum," said Moody's Senior Vice President Tom Byrne. The performance of the export sector was "formidable." China's trade surplus climbed 84 percent from a year earlier in the first half to $112.5 billion. The nation has improved the strength and supervision of State-owned commercial banks, Moody's said today. Hong Kong's debt rating was raised to Aa2 from Aa3 after government finances improved, the ratings company said in a separate statement. "The Hong Kong government has almost no debt and large and growing fiscal reserves, equivalent to about one quarter of GDP," said Moody's Vice President Steven Hess in a statement. |
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