Fitch cuts China's credit rating

Fitch has cut China's local currency rating from AA- to A+, amid concerns the country is not doing enough to address its soaring debt levels.

The agency warned the country's debt problems have grown so large a government bailout may be required in the near future. "We think China's debt problem is going to require sovereign resources to resolve and debt will migrate onto China's sovereign balance sheet," said Fitch. "Our base case is for a gradual rebalancing and resolution of the debt problem, albeit with the sovereign likely picking up some of the tab." Fitch added total credit in China may have reached 198% of gross domestic product at the end of last year, compared to 125% in 2008. The downgrade applies to yuan-de...