Fitch issues warning against China's growth model

Global ratings agency Fitch has warned that China's “investment-driven growth model” faces increasingly serious constraints due to heavy debt financing by local governments. Rapidly expanding credit, especially debt financing by local governments, is one of the prime reasons behind the warning, Fitch Ratings said. The agency announced yesterday a currency sovereign rating of AA- for China, on a negative outlook, while it kept its stable outlook of A+ for the country's foreign debt holdings.