Thursday saw Moody's affirm China's A1......>

RATINGS: Thursday saw Moody's affirm China's A1 rating; outlook stable.

- The A1 rating is supported by Moody's assessment that, "while economy-wide

leverage will likely continue to rise and pockets of financial stress will

periodically become apparent, the authorities have the financial and policy

means to contain the rise in leverage, mobilise resources to support stressed

public sector entities and maintain financial stability. The stable outlook on

China's rating reflects balanced risks at the A1 rating level. Episodes of

financial stress for some local banks or state-owned enterprises (SOEs) are

likely to continue to test the capacity of the central and regional governments

to prevent contagion. However, large fiscal and foreign exchange reserves and

the government's control of parts of the economy and financial system lend

effectiveness to measures aimed at stemming financial stability risks."