Moody's Investors Service
Asia Pacific Weekly

Feb 8, 2012

Moody's Asia Pacific Weekly keeps you updated on the latest research, rating actions, and events from Moody's in Asia.

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Contents






European debt crisis

Euro Summit Makes Progress, but Important Uncertainties Remain (Feb 6)

Unilateral Action Threatened by Greece Is Also Available to Other Sovereigns (Feb 6)

Alpha Bank Raises Doubts about Merger with EFG Eurobank Ergasias, a Credit Negative (Feb 6)

Spain Announces New Credit Positive Restructuring Plan for Banks (Feb 6)

Bank of Italy Lowers Barriers for Hybrid Buybacks, Credit Positive for Italian Banks (Feb 6)

 

For additional information on The Euro Area Sovereign Crisis and Affected Credits please visit: www.moodys.com/eusovereign

 
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Research
 

Feb 6

Pakistan's B3 rating reflects the country's low economic, institutional and government financial strengths, and its high susceptibility to event risk.

 

Feb 8

Moody's has maintained its stable outlook for the Asian power utilities sector (ex-Japan) for the next 12 to 18 months.

 

Feb 2

Moody's expects a moderately negative ratings trend for Asia's rated, non-financial firms, amid a challenging operating environment of slower growth in both developed and emerging economies.

 

Feb 6

Moody's Asian Liquidity Stress Index (LSI) rose in January with 12.5% of its rated speculative-grade portfolio demonstrating inadequate liquidity compared with 9.3% in December, and a historical low of 9.0% in November.

 

Feb 6

While Moody's expects a benign credit environment for Asia Pacific banks in 2012, there are still potential hazards that could develop into material adverse shocks for particular systems.

 

Feb 6

While banking systems in the Asia Pacific region are expected to remain generally resilient, Australia, New Zealand, Korea, and Vietnam are most exposed in the event that the euro area crisis continues to deteriorate.

 

Feb 6

The severe flooding in Thailand in late 2011 presents reinsurers with challenges that go beyond just significant losses.

 

Feb 6

A Reduction of Woodside's Stake in Browse LNG Project; Lotte Shopping and Shinsegae's Stake in Hi-Mart; Australian REITS; Japanese REITs; Cross-Border Repurchase Arrangement for Malaysian and Thai Banks; Hong Kong's Latest Budget Surplus; Australia’s Security Interest Rules; and more.

 
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Rating Actions
 

Australia Commonwealth Bank of Australia - Covered Bond Programme

Feb 6

Moody's has assigned a definitive long-term rating of Aaa to the Series 6 covered bonds issued under the USD30 billion covered bond programme of the Commonwealth Bank of Australia (Aa2/Prime-1/B-). On Feb 3, Moody's assigned a definitive long-term rating of Aaa to the Series 7 covered bonds issued under the USD30 billion covered bond programme of the same bank. On Feb 2, Moody's assigned a definitive long-term rating of Aaa to the Series 5 covered bonds issued under the USD30 billion covered bond programme of the bank.

 

Australia –
Feb 6

Moody's has assigned a definitive long-term rating of Aaa to Series 2012-C3 and Series 2012-C4 covered bonds issued under the USD20 billion covered bond programme of Westpac Banking Corporation (Aa2/Prime-1/B-).

 

Hong Kong –
Feb 6

Moody's has assigned a Baa2 rating to the proposed bond issuance of up to USD500 million by China Overseas Finance (Cayman) IV Ltd, and guaranteed by China Overseas Land and Investment Ltd. At the same time, Moody's has affirmed COLI's Baa2 issuer and senior unsecured debt ratings. The ratings outlook is stable.

 

Hong Kong –
Feb 6

Moody's has assigned an A1 rating to HKCG (Finance) Ltd's 10-year, HKD219 million, fixed-rate notes drawdown under its USD1 billion Medium Term Note Programme guaranteed by The Hong Kong and China Gas company Ltd. The rating outlook is stable.

 

Korea –
Feb 2

Moody's has assigned an A3 rating to the RMB bonds to be issued by Lotte Shopping Business Management (Hong Kong) Ltd and guaranteed by the parent, Lotte Shopping Co Ltd. At the same time, Moody's has affirmed Lotte Shopping's A3 issuer rating. The ratings outlook is stable.

 

New Zealand –
Feb 7

Moody's has assigned a definitive long-term rating of Aaa to the Series 2012-1 covered bonds issued under the terms of a €7.0 billion covered bond programme established by ASB Bank Ltd.

 

New Zealand –
Feb 6

Moody's has assigned a definitive long-term rating of Aaa to the Series 6 Tranche 2 covered bonds issued by the Bank of New Zealand (rated Aa3, Prime-1) and Series 7 covered bonds issued by BNZ International Funding Ltd, London Branch (a wholly owned subsidiary of BNZ).

 

Philippines –
Feb 6

Moody's has assigned a Ba2 rating to the USD-denominated senior unsecured bonds to be issued by BDO UNIBANK, INC. The rating outlook is stable.

 

Singapore –
Feb 3

Moody's has assigned a Baa1 senior unsecured rating to the SGD200 million notes to be issued by HSBC Institutional Trust Services (Singapore) Ltd, in its capacity as trustee of Ascendas Real Estate Investment Trust. The outlook is stable.

 

Singapore –
Feb 7

Moody's has assigned a Ba3 corporate family rating to Precision Capital Private Ltd, a subsidiary of MMI Technologies Ltd, which provides precision engineering components for hard drive disk manufacturers worldwide.

 
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Announcements
 

Australia –
Feb 6

Moody's notes an announcement by Reliance Rail Finance regarding a restructure agreement involving the State Government of New South Wales (rated Aaa), financial guarantors, and other parties to restructure the company's financing.

 

Hong Kong –
Feb 3

Moody's notes the proposed acquisition of Orange Austria by Hutchison Whampoa Ltd (rated A3 negative) subsidiary, Hutchison 3G Austria, the mobile telecommunications operator in Austria.

 

Hong Kong –
Feb 6

Moody's has assigned a Baa3 rating to the Reg S USD bonds to be issued by Nan Fung Treasury (1) Ltd and guaranteed by Nan Fung International Holdings Ltd. Moody's has also affirmed the company's Baa3 issuer rating. The ratings outlook is stable.

 

India –
Feb 2

An interim decision by the Supreme Court of India requiring Indian Oil Corporation (Baa3 stable) to deposit 50% of the company's disputed and unpaid entry tax is a credit negative for the firm, although the decision does not change the firm's rating.

 

Korea –
Feb 7

Moody's says that GS Engineering & Construction's moderate operating results for 2011 were broadly in line with expectations and therefore will not have an immediate impact on its Baa3 issuer rating and negative outlook.

 

Korea –
Feb 3

Moody's says that KCC Corporation's fourth-quarter operating results were weaker-than-expected, but will not have an immediate impact on its Baa2 issuer rating and stable outlook.

 

Korea –
Feb 1

Moody's says that LG Chem Ltd's moderate operating results in fourth-quarter 2011 are broadly in line with expectations and therefore will not have any impact on its A3 issuer rating and stable outlook.

 

Korea –
Feb 7

Moody's says that POSCO's moderate operating results in 2011 and investment plan for 2012 will not have any immediate impact on its A3 rating and negative outlook.

 

Singapore –
Feb 7

Moody's sees no immediate impact on the A3 corporate family rating and Baa1 senior unsecured rating of Ascendas Real Estate Investment Trust following its announcement that it will be acquiring three properties in Science Park from its sponsor, Ascendas Land (Singapore) Pte Ltd, for SGD183 million. The rating outlook remains stable.

 

Singapore –
Feb 2

Moody's says that while STATS ChipPAC's fourth quarter results were tempered by the effects of the Thai floods and weak industry sentiment, the company's full year performance remains in line with its Ba1 rating and stable outlook.

 

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Moody's Events

 

Moody's 2012 Outlooks on Indonesian Sovereigns, Banks, and Corporates
Jakarta, February 9, 2012

Briefings: Moody's Australian Banking and Corporate Outlook
Sydney, February 16, 2012
Melbourne, February 17, 2012

Briefings: Moody's Australian Structured Finance Outlook
Sydney, February 23, 2012
Melbourne, February 24, 2012

 

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Moody's Training Seminars
 

Advanced Bank Risk Analysis 
Hong Kong, February 14-16, 2012

Bank Regulation: Basel and Beyond
Hong Kong, February 17, 2012

Analyzing Sovereign and Country Risk  
Sydney, February 27-28, 2012

Fundamentals of Bank Credit Analysis   
Sydney, February 29-March 1, 2012

Interest Rate Swaps: Pricing, Risk Management and Structured Applications
Singapore, March 5-6, 2012
Hong Kong, September 10-11, 2012

Fundamentals of Corporate Credit
Hong Kong, March 6-9, 2012
Sydney, July 31-August 3, 2012
Singapore, September 18-21, 2012

Corporate Credit Rating Analysis
Hong Kong, March 27-29, 2012
Sydney, May 1-3, 2012
Taipei, September 4-6, 2012
Hong Kong, November 5-7, 2012

 

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Contact Us
         
Paul Ovnerud-Potter
Vice President
Australia & New Zealand
61.2.9270.8115
Christina Maynes
Senior VP & Representative Director
South & Southeast Asia
65.6398.8338
Yasushi Kawasaki
Vice President
Japan
81.3.5408.4041
         
Leon Liang
Vice President
Greater China
86.10.6319.6566
Soo-Jung Kim
Representative Director
Korea
82.2.787.2273
Asia Pacific Client Desk
Research & Subscriptions
65.6398.8308
852.3551.3077