China’s sovereign outlook positive; reform needed to sustain growth
China’s rating outlook is supported by favorable medium-term economic growth prospects, as well as by strong government debt dynamics. But tight control over local government finances and a new wave of reform, especially in the financial system, are necessary for China to sustain rapid and stable economic growth throughout the rest of this decade... Press Release | Full Report
Portugal's economic adjustment program still comes with high policy implementation risk
The IMF, the European Commission, and the European Central Bank have recently approved financing for Portugal of about €8.1 billion. The lenders expect Portugal’s debt-to-GDP ratio to peak at 118% in two years, and stay elevated for several years. Even these forecasts are subject to slippage as they assume a herculean effort at fiscal consolidation. These implementation risks and broader euro area pressures will continue to weigh on Portugal’s creditworthiness... Full Report
