ASIA PACIFIC WEEKLY

ASIA PACIFIC WEEKLY

Sep 30 - Oct 7, 2015

In this week’s Asia Pacific Weekly we take a closer look at China’s reduced down-payment requirement for first-time homebuyers, which is credit positive for China’s property developers. These measures will support demand for properties by increasing the number of eligible homebuyers and encouraging more prospective buyers to purchase homes for their own use.

We also discuss the weakening credit quality of palm oil producers across Asia and examine the impact of the depreciating Malaysian ringgit and Indonesian rupiah in our latest edition of Inside ASEAN.

And our outlook for Japan’s automotive industry is stable, because we expect the profitability of our three rated automakers to be steady in the current fiscal year ending 31 March 2016.

On the events front, we will be holding briefings on Asian High Yield Corporates Trends & Risks in Singapore and Hong Kong this month. There are also optional pre-briefing workshops. For full details on these and other upcoming events, please refer to the list below.

Best regards,

Min Ye
Managing Director – Regional Head Asia Pacific

To access the information within this email we ask that you register to Moodys.com. Registration is complimentary.

Moody's Training Seminars

RESEARCH

Real Estate Investment Trusts — Singapore: Strong EBITDA Growth Supports
Stable Outlook Despite Challenges
[07 Oct] Our stable outlook reflects Moody's expectation that the sector's larger asset base — driven by new acquisitions and the completion of asset enhancement initiatives during 2014-2015 — will result in a 6%-9% growth in aggregate annual EBITDA for our 19 rated S-REITs.

Inside ASEAN
[07 Oct] The latest issue examines the credit quality of palm oil producers across Asia as well as the impact of the recent currency depreciation of the Malaysian ringgit and Indonesian rupiah.

Australian Real Estate Investment Trusts (A-REITs) — Rated Companies'
Financial Profiles Will Remain Healthy Through 2016
[06 Oct] The liquidity and debt maturity profiles of our eight rated A-REITs will remain solid over the next 12-18 months, because the trusts will maintain their conservative approach to debt and spending.

Cost Cuts and Cautious Expansion Support Profitability and Leverage
[06 Oct] Our outlook for Japan's automotive industry is stable, as we expect the profitability of its three rated automakers to be steady for the current fiscal year ending 31 March 2016.

Property - China: Reduced Down-Payment Requirement Is Credit Positive for Chinese Developers
[05 Oct] The reduced down-payment requirement for first-time homebuyers in China is credit positive for Chinese property developers, because it will support demand for properties.

Global Structured Finance Collateral Performance Review.
[01 Oct] The default rates for the underlying assets of Japanese RMBS and installment sales loan ABS transactions rose over the three months between June 2015 and March 2015, while those for auto loan ABS and credit card ABS transactions fell.

Residential Mortgage Delinquency Map: NSW Improves, but Most States Deteriorate
[01 Oct] The performance of Australian auto ABS transactions improved in July 2015 from June 2015, with delinquencies in excess of 30 days falling to 1.32% from 1.47%. However, the year-on-year performance was worse in July 2015 when compared with the 1.05% seen in July 2014.

Japanese Electric Industry Reforms Could Weaken Utilities' Credit Quality
[30 Sep] The substantial restructuring plans associated with the deregulation of Japan's electric
utility industry could weaken the credit quality of the sector's companies and increase risk for bondholders.

Kansai Airport Concession To Spur Private Funding of Japanese Infrastructure
[30 Sep] The proposal to allow a concessionaire to operate Kansai Airport according to a concession model is a bellwether for Japan's nascent private-sector concession market. The project -- which, if successful, would also be Japan's first major concession deal -- could pave the way for similar transactions in the airport sector and beyond.

RATING EVENTS

AUSTRALIA
[30 Sep] Moody's assigns definitive ratings to FleetPartners ABS warehouse FP Turbo Trust 2007-1 (Australia)
[02 Oct] Moody's affirms Newcrest's Baa3 ratings, changes outlook to stable from negative
[02 Oct] Moody's upgrades Wyuna Water's rating to A2; outlook stable

CHINA
[5 Oct] Moody's assigns first-time A1 rating to Dongfeng

HONG KONG
[30 Sep] Moody's assigns ratings to Balance Sheet Loan Transaction 2015-1, SCB's unfunded and unexecuted CDS
[30 Sep] Moody's puts Class B notes issued by China Real Estate Asset Mortgages Limited on review for downgrade

NEW ZEALAND
[30 Sep] Moody's assigns definitive Aaa to Westpac New Zealand Limited's Series
2015-1 mortgage covered bonds

JAPAN
[30 Sep] Moody's assigns definitive rating to Absolute 1509 backed by auto loan receivables
[30 Sep] Moody's affirms JT's Aa3 rating following its acquisition announcement
[02 Oct] Moody's assigns a provisional rating to Auto Loan ABS Program 1510 Series
[05 Oct] Moody's assigns (P)Prime-1 rating to Toyota Industries Commercial Finance's US Commercial Paper program
[05 Oct] Moody's affirms Hyakujushi Bank's A3 with stable outlook

MALAYSIA
[06 Oct] Moody's affirms ratings of CIMB Group and subsidiaries; downgrades CIMB Bank's BCA

PAKISTAN
[02 Oct] Moody's assigns definitive B3 rating to Pakistan's global bond offering

SINGAPORE
[06 Oct] Moody's assigns definitive Baa2 to Ascendas REIT's perpetual securities

ANNOUNCEMENTS

AUSTRALIA
[30 Sep] Moody's: Origin's AUD2.5 billion equity raising to increase resilience to downside scenarios; ratings unaffected
[02 Oct] Moody's: No rating impact on Select 2012 Trust Series 1 from Uplift

HONG KONG
[30 Sep] Moody's: No negative rating impact on notes issued by Whitedove Funding
2014 following proposed guarantees replacement
[06 Oct] Moody's releases latest compendium on China securitization

KOREA
[30 Sep] Moody's: KLHC's improved operating performance and debt reduction is credit positive; rating unaffected

MOODY'S EVENTS

(Optional) Pre-Briefing Workshop: Asian High Yield Corporates Trends & Risks
Singapore, 15 Oct

Briefing: Asian High Yield Corporates Trends & Risks
Singapore, 15 Oct

ASIFMA Structured Finance Conference 2015
Hong Kong, 15 Oct

Japan banks - Banking System Outlook and Regional Banks
Tokyo, 20 Oct

(Optional) Pre-Briefing Workshop: Asian High Yield Corporates Trends & Risks
Hong Kong, 20 Oct

Briefing: Asian High Yield Corporates Trends & Risks
Hong Kong, 20 Oct

World Bank Singapore Infrastructure Finance Summit
Singapore, 20 Oct

FinanceAsia 4th Borrowers & Investors Forum, Southeast Asia
Singapore, 29 Oct
Click below to access teleconference / webcast replay. (*Free registration is required)

Asian Emerging Market Sovereigns: Credit Resilience Due to Buffers Against Rising Risks

MOODY'S TRAINING SEMINARS

HONG KONG
Corporate Credit Rating Analysis, 2-4 Nov
Fundamentals of Bank Credit Risk Analysis, 5-6 Nov
Insurance Credit Analysis, 25-27 Nov

KUALA LUMPUR
Islamic Finance – Risk Management, 23-24 Nov
Islamic Finance – Sukuk: Theory and Practice, 25-26 Nov

SINGAPORE
Covenants & Documentation, 11 Nov
Corporate Credit Rating Analysis, 17-19 Nov
Fundamentals of Corporate Credit, 8-11 Dec

SYDNEY
Advanced Corporate Credit Analysis, 13-15 Oct
Covenants & Documentation, 16 Oct
Corporate Credit Rating Analysis, 19-21 Oct
Fundamentals of Bank Credit Risk Analysis, 22-23 Oct

TOKYO
Fundamentals of Bank Credit Risk Analysis, 3-4 Dec

Soo-Jung Kim
Representative Director
Korea and Mongolia
+82.2.787.2273

Vineet Gupta
Vice President
India
+91.750.625.0104

Asia Pacific Client Desk
Research & Subscriptions
+852.3551.3077

Yasushi Furuya
VP-Account Management
Japan
+81.3.5408.4272

James Flitton
Vice President
Singapore
+65.6398.8338

Maria Lee
Vice President
South China - Hong Kong
+852.3758.1338

Kelly Moy
Senior Vice President
North Asia
+852.3758.1323

Cynthia Zhao
Vice President
North China - Beijing
+86.10.6319.6566

Miki Zhou
Vice President
Central China - Shanghai
+86.21.6101.0227

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