29 Jul 2020|Moody's Investors Service
In this rating methodology, we explain our general approach to assessing credit risk for local government financing vehicles (LGFVs) in China, including the qualitative and quantitative factors that are likely to affect rating outcomes in this sector.
31 Jul 2020|Moody's Investors Service
We now assess 35 Chinese entities using our new local government financing vehicle (LGFV) methodology. We have affirmed the ratings of 28 of these LGFVs, upgraded six and downgraded one. We revised the outlooks for three LGFVs to stable from negative; all 35 rated LGFVs now have stable rating outlooks.
30 Jul 2020|Moody's Investors Service
These actions reflect our classification of these entities as LGFVs under our new methodology, and our assessment of their respective regional and local government (RLG) owners' capacity to provide support and the LGFVs' specific characteristics affecting this support.
30 Jun 2020|Moody's Investors Service
Zhejiang is an affluent and coastal province in eastern China. LGFVs in Zhejiang will continue to benefit from onshore credit-easing policies in next 12 months. LGFVs owned by prefecture-level cities in Zhejiang province have fairly strong funding capabilities, but credit risk still varies.
11 Jun 2020|Moody's Investors Service
Coronavirus-related disruptions placed further strain on the finances of China's regional and local governments in the first quarter of 2020. The shock comes after RLGs recorded the lowest growth rate in general budgetary revenue in a decade last year. We expect this year's sharp slowdown in GDP growth to exert continued pressure on RLGs and to lead to a rise in their debt burdens over the short to medium term.
08 Jul 2020|Moody's Investors Service
In May, Chinese regional and local governments began to slowly recover from the impact of the coronavirus and the associated tax and fee cuts. Infrastructure and property investment is recovering faster than other sectors. RLG revenue remains significantly lower than pre-shock trends would have implied, while spending needs are higher.