Coronavirus Credit Effects
The coronavirus outbreak is affecting economic activity and financial markets in China and beyond. While Chinese and other issuers have the financial means to absorb the shock, we will continue to monitor the credit implications of the epidemic.
  • SUMMARY
  • REPORTS
  • Credit environment in Asia and China
    SECTOR COMMENT
    24 Feb 2020|Moody's Investors Service
    The outbreak may delay or reduce the funding LGFVs receive from their RLG owners. But LGFVs will continue to receive support and maintain access to funding, which will help them refinance.
    SECTOR IN-DEPTH
    19 Feb 2020|Moody's Investors Service
    Credit conditions in Asia will likely weaken this year in tandem with a slowdown in growth momentum, continued trade policy uncertainty and simmering political disputes. The outbreak of the coronavirus globally has further dented growth prospects.
    SECTOR COMMENT
    20 Feb 2020|Moody's Investors Service
    Slower economic growth in China increases the risk of zero growth or a contraction in general budgetary revenue for regional and local governments in 2020.

    OUTLOOK
    16 Feb 2020|Moody's Investors Service
    We have revised our 2020 global GDP growth forecast down, reflecting the impact of the coronavirus in China and domestic challenges in India, Mexico and South Africa. For China, we have reduced our growth forecast to 5.2% for 2020 from 5.8% previously, and maintain our 2021 growth forecast of 5.7%.

    SECTOR COMMENT
    14 Feb 2020|Moody's Investors Service
    Chinese tourists are a relatively small proportion of visitors to Europe, but if they stay away for an extended period because of the coronavirus some companies' credit quality could suffer.
    SECTOR IN-DEPTH
    14 Feb 2020|Moody's Investors Service
    This report summarizes the question-and-answer portion of our 7 February webinar on the credit effects of the coronavirus on economies, companies, banks and structured finance deals in APAC.

    SECTOR IN-DEPTH
    11 Feb 2020
    Economic growth in Asia Pacific countries and potentially some commodity exporters globally will be most directly affected by the virus outbreak. But our baseline scenario assumes that the credit-negative implications will be minimal. 

    SECTOR IN-DEPTH
    12 Feb 2020|Moody's Investors Service
    Spread of the coronavirus in China and beyond would have mixed credit implications for US healthcare companies. While the outbreak could hamper medical device and pharmaceutical companies that manufacture or source products in China, it could also ultimately increase demand for hospital services, medical products and devices, and certain drugs.
    SECTOR IN-DEPTH
    12 Feb 2020|Moody's Investors Service
    If the disruptions caused by the virus outbreak persist in the next few months, this will lead to more loan losses for banks, which in turn will hurt their profitability.

    SECTOR COMMENT
    11 Feb 2020|Moody's Investors Service
    Companies are leveraging their strong technology and supply chain management capabilities, as well as their large user bases, but this may not produce near-term financial benefits.

    SECTOR IN-DEPTH
    10 Feb 2020|Moody's Investors Service
    National property sales are likely to fall slightly in 2020 and in turn will weaken rated developers' liquidity against the backdrop of the coronavirus outbreak.

    SECTOR COMMENT
    06 Feb 2020|Moody's Investors Service
    Asset pressure will be highest on loans to small businesses and individuals in the regions affected by the coronavirus; any broader impact will depend on measures to contain the epidemic.
    SECTOR COMMENT
    06 Feb 2020|Moody's Investors Service
    Adverse impact is short term and will be mitigated by long-term auto demand and our rated auto makers' solid business profiles and good financial buffers.
    Coronavirus credit effects on China
    SECTOR COMMENT
    04 Feb 2020|Moody's Investors Service
    The spread of the coronavirus across China poses a threat to Chinese transport demand because of reduced travel incentives and service suspensions.
    SECTOR COMMENT
    04 Feb 2020|Moody's Investors Service
    The coronavirus outbreak in China is credit negative for Chinese property developers because continued government measures to prevent it spreading further will weaken property sales and developers' cash flow in the first quarter of 2020.
    SECTOR COMMENT
    04 Feb 2020|Moody's Investors Service
    The direct financial impact to Chinese insurers from the coronavirus outbreak will be modest but potential risk on operations and distribution is high.