International ratings agency Moody's says China's de-leveraging measures are broadly credit positive for companies, but implementation of the plan will be critical.

Moody's says Chinese banks are expected to benefit from improving corporate fundamentals and profitability as the measures are carried out in a market-based manner.

The central government announced steps in October to reduce companies' leverage by encouraging mergers and acquisitions and debt-for-equity swaps.

Moody's says China needs to carefully design the rules and impose effective market oversight to ensure the results of the de-leveraging effort.