Moody's cuts China's rating, warns of fading financial strength as debt mounts

Shanghai

MOODY'S Investors Service downgraded China's credit ratings on Wednesday for the first time in nearly 30 years, saying that it expects the financial strength of the economy will erode in coming years as growth slows and debt continues to rise.

The one-notch downgrade in long-term local and foreign currency issuer ratings, to A1 from Aa3, comes as the Chinese government grapples with the challenges of rising financial risks stemming from years of credit-fuelled stimulus.

"The down…