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Moody's downgrades China's rating to A1

Country's outlook changed to stable from negative

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The construction site of China Zun, where Beijing's tallest building is expected be built.   © Reuters

TOKYO -- Moody's Investors Service on Wednesday downgraded China's long-term local and foreign currency issuer ratings one notch to A1 from Aa3, as the country's financial strength is expected to weaken on the back of rising debt and slowing economic growth.

"The downgrade reflects Moody's expectation that China's financial strength will erode somewhat over the coming years, with economy-wide debt continuing to rise as potential growth slows," the rating agency said in a statement.

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