In a rapidly evolving global economy and amid the recent downgrade of China's sovereign rating, international ratings agency Fitch has revised its outlook for five of China's largest state-owned banks, as well as for China Merchants Bank. Previously rated as “stable,” the outlook has now been downgraded to “negative.” Despite adverse macroeconomic signals, Fitch remains confident that the Chinese government maintains sufficient financial flexibility to support its banking sector even in the face of increased budget deficits and rising debt levels.