China says economy ‘stable’, rejects downgrade

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China's Finance Ministry denounced a report by Fitch Ratings that kept its sovereign debt rated at A+ but downgraded its outlook to negative, saying Wednesday that China's deficit is at a moderate and reasonable level and risks are under control.

Risks to China's public finances are rising, Fitch said, as Beijing works to resolve mounting local and regional government debts and to shift away from heavy reliance on its troubled property industry to drive economic growth.

But while slower growth is adding to the challenges of coping with heavy borrowing, Fitch said it kept China's A+ rating due to its "large and diversified economy", its vital role in global trade and its huge foreign exchange reserves.

The Finance Ministry said it was a "pity" that Fitch had downgraded its sovereign debt and faulted its methods, saying it had failed to take into account Beijing's moves toward "appropriately intensifying, improving quality and efficiency" of its government spending.

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