Here's the thing about China, if it doesn't pay up, the world at large can't do anything to China. The world is dependent on Chinese export. If China sinks it will sink the world economy with it. Too Big to fail actually applies to China. If China falls short of paying up its mortgages or loans on time it can't be recovered by anyone. The only thing one could do is wait. So all the talk is useless, China gas got everyone by the balls. There is no way to threaten China, nor can any sanction be put on China because the world trade would suffer. China is indeed the world's factory. In my opinion, Moodys is wrong this Debt-Fueled growth of China will and has to be sustained for safeguarding everyone's investments, China cannot be sunk at this point at any cost. Moodys is not the sole authority on rankings and their opinion matters less and less in the context of China.