China's rating not jeopardized by slower growth

BEIJING - China's Aa3 sovereign bond ratings are supported by its economic and financial strength, which have not been jeopardized by the country's new era of slower growth, Moody's said on Tuesday.

The rating agency's outlook for the country's credit rating is stable.

China's economic growth ticked down to 7.7 percent in the first quarter, falling short of market expectations and suggested a continued tepid economic rebound for the world's second-largest economy.

"We see China's growth moderating further, but will remain well above global average over a five-year horizon, if not longer," Moody's said in its annual report.

After years of economic expansion at double-digit rates, China is believed to have entered a "new norm" of slower growth.

Moody's predicted China's GDP will grow 8 percent this year and 7.5 percent in 2014.

But the agency considered that the Chinese government's financial strength remained very high.

"Underpinning China's credit fundamental is continued robust economic growth against a backdrop of low inflation," Moody's said.

China's strong government's finances are reflected in its small budget deficits, moderate gross financing requirements, and a moderate on-budget debt burden slightly under 30 percent of GDP.