Finance minister unfazed by Moody's outlook cut

By Chen Yingqun and Zheng Yangpeng (chinadaily.com.cn) Updated: 2016-03-20 17:23

China's Finance Minister Lou Jiwei speaks at the China Development Forum in Beijing on Sunday. [Photo by Feng Yongbin/China Daily]

China's Finance Minister Lou Jiwei said he was untroubled by US ratings agency Moody's Investors Service lowering its outlook on China's sovereign credit ratings from "stable" to "negative".

Speaking at the China Development Forum in Beijing on Sunday, Lou said he had not observed a negative response from any market international or domestic to the change in outlook.

Moody's made the change earlier this month, citing governments' weakening fiscal metrics and rising contingent liabilities.

Lou said he understood Moody's concerns about China's local government debts and whether the country would be able to carry out its overcapacity reduction and structural reform programs smoothly.

However, he reiterated the central government's resolve to push through with reform, and the related measures to be taken.

The minister was responding to Asian Infrastructure Investment Bank president Jin Liqun, who raised concerns that the change in outlook might affect the AIIB, as China is a major shareholder.

However, Lou said: "We don't much care about the ratings."

China has the confidence to restructure and the ability to realize that confidence, as evidenced by the markets' reaction and the government's commitment, he added.