MOODY'S Investors Service today lowered its outlook for China's government bond rating from positive to stable.

The agency claimed China has not made enough progress in reducing risks in government debt and reining in credit expansion.

"Structural reforms under the new leadership are expected over time, but their scope and pace may not be sufficient over the course of the next 12-18 months to justify a rating upgrade," Moody's said in a statement.

The agency affirmed the China's Aa3 rating, underpinned by robust economic growth, strong central government finances and abundant foreign exchange reserves.

The comments added to concerns that risks are mounting and China's economic rebound is weaker than expected.

China's top statistics bureau yesterday reported the country's GDP grew 7.7 percent year-on-year in the first quarter - missing market expectations of around 8 percent.

Also yesterday, the World Bank lowered China's 2013 economic growth forecast to 8.3 percent from 8.4 percent, saying risks in the property sector, financial system and local government liabilities may buffet a government-management slowdown.

And last week, rating agency Fitch downgraded China's local currency bond rating from AA- to A+ citing financial risks from rapid credit growth and the rise of shadow banking.