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#Business : Chinese country’s sovereign credit rating downgraded by Moody's

It’s easy to be dismissive of credit rating firms, given their shortcomings in the run-up to the financial crisis.




Today’s downgrade doesn’t tell us anything massively new; it’s no secret that China is facing rising debts, slowing growth, and a tricky tightrope from an industrial economy to a service sector one.

                                                      



But Moody’s downgrade will matter to Chinese firms; they’ll probably end up paying higher borrowing charges, now that Beijing itself is seen as riskier.

The Wall Street Journal explains how Chinese banks already piggy-back on the country’s sovereign credit rating (which is higher than their own).
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