Fitch downgrades China's rating to 'A'

While China's more proactive fiscal policy this year will lead to more government debt, this will support economic growth and thus improve the country's debt repayment capacity,

Wang said

China's economy has a stable foundation, many advantages, strong resilience and great potential,

said the Ministry of Finance

Favorable production factors such as talent dividend, capital accumulation and technological progress continue to support growth,

it said,

While the size of government debt is important, a sovereign credit rating should reflect a government's actual ability to repay,

he said

Walter Hood Fitchagency

The downgrade reflects our expectations of a continued weakening of China's public finances and a rapidly rising public debt trajectory during the country's economic transition,

Fitch said in a statement