Credit stable for most non-financial Chinese firms: report
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Rating agency Moody's said credit trends for most of its rated non-financial Chinese companies were stable, with only those in the retail sector still facing weak but improving credit conditions.

"A challenging operating environment and merger and acquisition activity have pressured the credit profiles of Chinese retail companies, but revenue and margins are stabilizing thanks to improved product and service offerings and upgraded shopping environments," said Lina Choi, a Moody's vice president and senior credit officer.

Choi made the comments in a report monitoring Chinese businesses in Internet and technology, automobiles, retail, oil, construction and engineering, property and utilities.

Revenue growth of IT companies will slow but remain stable, supported by steady consumer demand and improved monetization, while automakers and auto services companies will face the same situation due to reduced vehicle purchase tax incentives.

Despite slowing sales growth on home purchase curbs, the credit profiles of property developers will improve, with major companies able to increase their market share.

Construction and engineering companies will see moderate revenue increases and stable leverage because of solid domestic and overseas infrastructure investment as well as a large order backlog for existing property projects.

Moody's also expects the credit trends of companies in oil and utilities to remain stable.

Author： 　　　Source：xinhua　　　 Editor：Yang Fan