After Moody's downgrading of China' long-term sovereign credit rating, the credit rating of China’s developmental financial institutions is pegging with the sovereign rating, and China Development Bank were adjusted downwardly while the expectation was adjusted positively from negative to stable. The rationale behind the downgrading is the increase in the economic and financial risk of China due to rising credit growth and liability burden. According to an official from China Development Bank, the rationale behind the downgrading has existed for an extended period of time, and the rating is not reliable. During the last five years, the China Development Bank has provided trillions of RMB to the financing in the physical economy.