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Rating downgrades hit China's companies

Moody's cut its credit outlook on more than 60 Chinese companies, including Bank of China, to "negative" from "stable" in February. (Photo by Takaki Kashiwabara)

HONG KONG -- Moody's revision of China's sovereign rating outlook to "negative" on the eve of a high-level meeting of the National People's Congress had been a slap in the face for the world's second-largest economy but the humiliation doesn't end there, as Chinese companies are still facing a wave of downgrades.

     Ratings agencies are hinting at a rise in downgrades as the credit quality of China's top companies could be in worse shape than previously thought due to their high leverage and sluggish demand.

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