Moody's (NYSE:MCO) Raises China's Credit Rating, Citing Strong Economy

Saying the economy of China and their sound balance of payments has helped them perform strongly, Moody's (NYSE:MCO) upgraded their rating on the country today from A1 to Aa3.

Moody's senior vice president Tom Byrne said, "The record of the past year demonstrates that China's policy response to the 2008 crisis has been effective. Real GDP growth initially rebounded rapidly in response to the stimulus measures, and is moderating to a more sustainable rate of growth, which seems likely to be around 9%-10% this year, and perhaps 8%-9% in 2011."

It's interesting to see Moody's, which is based in the United States, upgrade China almost immediately after China's Dagong rating agency lowered the U.S. credit rating from AA to A+ after the Federal Reserve announced they're going to implement another round of quantitative easing which Dagong said would reduce the ability of the U.S. to repay their debt.