# Moody’s Downgrades China Credit Ratings for First Time in 30 Years as Debt Mounts - Newsweek

> Moody's downgraded China's long-term local and foreign currency issuer ratings to A1 from Aa3, citing expected erosion of financial strength as debt rises and growth slows. China's Finance Ministry rejected the decision, calling the methodology inappropriate. The outlook was changed to stable from negative.

- Date: 2017-05-24 · published 2017-05-24T12:00:00.000Z
- Category: macro · region China · magnitude medium
- Page: https://feedsoft.ai/events/10570-moody-s-downgrades-china-credit-ratings-for-first-time-in-30-years-as-debt
- Commodities: [Australian Dollar (USD per AUD)](https://feedsoft.ai/c/AUDUSD.md), [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

The downgrade highlights financial risks that could slow Chinese economic growth and reduce demand for imported feed ingredients. Its direct effect on feed prices is modest, but it adds to uncertainty about China's import outlook.

## Read by commodity

- AUDUSD: bearish ▼
- USDCNY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2023-12-11 | [Yuan and equity markets fall on Moody’s Ratings downgrade](https://feedsoft.ai/events/6457-yuan-and-equity-markets-fall-on-moody-s-ratings-downgrade.md) | -0.7% | +0.0% |
| USDCNY | 2022-09-28 | [China's yuan slides to 14-year low after US rate hikes \| AP News](https://feedsoft.ai/events/8604-china-s-yuan-slides-to-14-year-low-after-us-rate-hikes-ap-news.md) | -0.9% | -0.1% |
| USDCNY | 2026-03-27 | [China's yuan falls to near 3-week low as safe-haven demand lifts dollar \| The Star](https://feedsoft.ai/events/20386-china-s-yuan-falls-to-near-3-week-low-as-safe-haven-demand-lifts-dollar-the-star.md) | -0.4% | -1.2% |
| USDCNY | 2024-11-28 | [Chinese yuan to hit record lows as U.S. tariff threat mounts, investment banks forecast](https://feedsoft.ai/events/27630-chinese-yuan-to-hit-record-lows-as-u-s-tariff-threat-mounts-investment-banks.md) | +0.1% | +0.7% |
| USDCNY | 2024-06-28 | [China’s central bank puts the yuan’s exchange-rate swings in crosshairs \| South China Morning Post](https://feedsoft.ai/events/30006-china-s-central-bank-puts-the-yuan-s-exchange-rate-swings-in-crosshairs-south.md) | -0.0% | -0.3% |

## Sources

- newsweek.com: https://www.newsweek.com/moodys-china-debt-614451
- scmp.com: https://www.scmp.com/business/markets/article/2095456/yuan-australian-dollar-hammered-lower-after-moodys-slashes-chinas

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.