Moody's (NYSE:MCO) Upgrades China's Credit Citing Strong Economy

Moody's (NYSE:MCO) upgraded China's debt today from A1 to Aa3, saying the sound balance of payments and the strong economic performance of the company has found support and will continue on, generating a positive outlook for their credit.

Moody's senior vice president Tom Byrne noted, "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."

This upgrade follows the opposite for the credit of the U.S., which was recently downgraded by Dagong, a rating agency based in China.

They felt the U.S. was entering into debt waters which aren't sustainable, and the U.S. won't be able to repay what it owes. They also believe the U.S. government's intention of paying the debt is suspect.

U.S. debt was downgraded because of the implementation by the Federal Reserve of another round of quantitative easing, this time $600 billion over the next eight months.

Other countries like Germany has stated similar concerns, as the first stimulus did nothing to help the economy, and this one will be a huge waste of money America can no longer afford.