quality development showing positive momentum, MOF spokesperson on Moody's affirmation of China’s A1 rating

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By Yin Yeping (Global Times) 10:03, May 27, 2025

Moody's Ratings has affirmed on Monday China's government A1 long-term local and foreign-currency issuer and senior unsecured ratings and the A1 foreign-currency senior unsecured shelf rating. The A1 rating, four notches below the top of Moody's 21-notch rating scale, is subject to low credit risk, said the ratings agency.

The affirmation of the A1 rating takes into account China's large, dynamic economy and capacity for innovation, said the outlook, noting that recent trends indicate an improving quality of growth, bolstering economic resilience.

Specifically, the outlook mentioned that "improvements in a range of innovation indicators and the large-scale deployment of AI suggest that innovation may drive higher productivity growth more effectively."

At present, the global economy faces multiple risks and challenges, including insufficient growth momentum, escalating geopolitical tensions, and increasing instability in the international trade and economic order, all of which have heightened uncertainty in economic performance, the MOF official said.

Speaking to media for comment over the latest outlook by the ratings agency, the MOF official said that against this backdrop, China's economy has made a strong start, with high-quality development showing positive momentum. Both production and consumption have continued to grow steadily, and the stability and coordination of economic operations have further improved, demonstrating strong resilience and vibrant vitality, said the official.

Looking ahead, the MOF official said that a combination of new and existing policy measures will continue to work in tandem and deliver tangible results, providing strong support for China's pursuit of high-quality economic development. Regardless of shifts in the external environment, China will remain confident, stay the course, and focus on managing its own affairs effectively.

This latest outlook by the foreign ratings agency can be taken as a recognition of the fundamentals of China's economy, Li Changan, a professor at the Academy of China Open Economy Studies, University of International Business and Economics told the Global Times on Monday, noting that the rating reflects not only the current situation, but also the long-term potential of China's economic development.

Moreover, compared with some Western countries, China's debt-to-GDP ratio is relatively low, which suggests strong debt-servicing capacity and a solid financial foundation, Li said, noting that this should be an important reason why the international market remains confident in China's sovereign debt.

As China continues to advance high-quality development, the long-term positive trajectory of its economy is unlikely to change, the expert added.

(Web editor: Tian Yi, Zhong Wenxing)