Moody’s says Asia Pa­cific cor­po­rate 3Q credit trend neg­a­tive

The Pak Banker - - Front Page -

HONG KONG

Global rat­ing agency Moody’s says that the rat­ing trend for cor­po­rates in Asia Pa­cific re­mained neg­a­tive in 3Q2012 as neg­a­tive rat­ing ac­tions con­tin­ued to out­num­ber pos­i­tive ac­tions by a large mar­gin of 15 to 5.

How­ever, this down­ward credit trend is ex­pected to sta­bi­lize for the rest of the year, in view of the eas­ing in mon­e­tary mea­sures im­ple­mented by gov­ern­ments in the re­gion and signs of a sta­bi­liz­ing econ­omy in China, says Clara Lau, a Moody’s Group Credit Of­fi­cer. In this con­text, Moody’s macroe­co­nomic cen­tral sce­nario for GDP growth in China is in the range of 7 to 8% in 2012 and 2013. Ac­cess by com­pa­nies to liq­uid­ity , es­pe­cially for spec­u­la­tive grade com­pa­nies , is there­fore ex­pected to im­prove, while op­er­at­ing per­for­mances will also demon­strate steadi­ness.

Lau was speak­ing on the re­lease of Moody’s lat­est report, which she au­thored, on rat­ing trends in Asia Pa­cific. The report is en­ti­tled “3Q2012 Rat­ing Trends For Asia Pa­cific Cor­po­rates Re­mained Neg­a­tive, but Ex­pect to Sta­bi­lize.” The report cov­ers Asia, Aus­tralia and Ja­pan. Sim­i­lar to the pre­vi­ous quar­ter, 73% of the neg­a­tive ac­tions af­fected spec­u­la­tive grade com­pa­nies, mainly re­sources and prop­erty is­suers. Ge­o­graph­i­cally, Chi­nese rated is­suers con­tin­ued to drive the neg­a­tive rat­ing trend, ac­count­ing for 40% of to­tal ac­tions, fol­lowed by In­done­sian and Korean is­suers, both at 20%.

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