Moody’s Cuts China Credit Outlook to Negative on Growing Debt Risks

China’s mounting local government debt woes are putting pressure on the country’s credit ratings.

Moody’s Investors Service lowered its outlook for China’s credit rating from stable to negative on Tuesday, warning that the financial stresses of some regional and local governments will necessitate Beijing to supply preserve to them. That could weigh on China’s government finances at a time when its economy is slowing.