Moody's Investors Service
ASIA PACIFIC WEEKLY
14 – 21 Sep 2016
 

This week’s Asia Pacific Weekly includes four major research reports. First, in our report on global automotive manufacturing, we look at how the industry faces a rapidly evolving environment and rising credit risk as companies need to make material changes to more effectively reduce the sector’s carbon footprint and respond to expected growth in the demand for alternative fuel vehicles. A teleconference next Tuesday will also discuss our conclusions.

Secondly, we have published our annual outlook on India’s banking system. While the stock of impaired loans could still increase, the report says that the pace of new impaired loan formation will be lower than it has been over the last few years, supporting our stable outlook for the system. However, the performance of public and private sector banks continues to diverge.

Finally, two individual reports on Islamic finance highlight the strong growth prospects for the sector, despite subdued issuance of sukuk, and separately the strong liquidity profiles of Islamic banks.

On the events front, our annual Asia Pacific Structured Finance Conference is coming up next week in Singapore. Meanwhile, in Tokyo, we will host a briefing on the negative outlook on the global shipping industry amid low freight rates and falling EBITDA and, in Manila, our Inside ASEAN briefing will consider the key credit issues facing the Philippines’ new leadership.

Finally, our teleconference this Friday will elaborate on two proposed rating methodologies for securities firms: one for industry market makers and another for industry service providers. We welcome your comments on these proposed methodologies until 3 November 2016.

For full details on all our upcoming events as well as replays, please refer to the list below.

 

Best regards,

MinYe

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.

 

 
In This Edition
 

RESEARCH

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Islamic Finance: Prospects Remain Strong Despite Subdued Sukuk Issuance
[20 Sep] Although growth trends in Islamic banking assets remain strong, growth in sukuk (Islamic bond) issuance has slowed while growth in Takaful insurance premiums has also pulled back from very rapid growth levels as the market matures.

Environmental Risks: Automotive Sector Faces Rising Credit Risks from Carbon Transition
[20 Sep] The automotive manufacturing sector globally faces a rapidly evolving environment and rising credit risk, because companies need to make material changes to more effectively reduce the sector’s carbon footprint and respond to expected growth in the demand for alternative fuel vehicles.

Request for Comment: Proposed Rating Methodology for Securities Industry Market Makers
[19 Sep] The proposed market makers methodology is analytically enhanced by the introduction of a balance sheet leverage metric and stress scenario liquidity and funding ratios, each of which Moody's considers to be among the key determinants for measuring the relative risk of these confidence-sensitive entities.

Request for Comment: Proposed Rating Methodology for Securities Industry Service Providers
[19 Sep] Although the key analytical considerations for rating service providers will not change materially, with most financial ratios remaining the same as in the existing methodology, Moody's approach will feature an enhanced scorecard that explains key analytical opinions.

Banking System Outlook - India: Bottoming Asset Cycle, Strong Liquidity Support Stable Outlook
[19 Sep] While the stock of impaired loans could increase, the pace of new impaired loan formation should be lower than what it was over the last few years. But the performance of public and private sector banks continues to diverge.

Singapore Banks Will Benefit From Improved Household Debt Metrics
[19 Sep] The improved debt service ratios mean that borrowers have more headroom to withstand higher interest rates, which in turn protects banks from loan delinquencies if interest rates rise further.

Banking: Vietnam Macro Profile: Weak
[16 Sep] Our assignment of a weak macro profile for Vietnam’s banking system reflects the high-risk credit conditions in the country, as seen by the banks’ elevated level of problem assets, their rapid credit growth rate, and the generally high level of leverage in the economy.

Islamic Banks: Strong Liquidity Profiles driven by Retail Focus but Deeper Sukuk Markets needed
[15 Sep] In a comparison of their liquidity coverage ratios with conventional peers across countries, those Islamic banks with a strong retail focus typically have strong ratios, but also face a shortage of Shariah-compliant high-quality liquid assets, putting them at a disadvantage relative to conventional banks.

Banks - Hong Kong: Passage of FI Resolution Ordinance Moves Hong Kong Closer Towards a Revised Resolution Regime
[15 Sep] The passing of the ordinance is an important milestone in the government’s efforts to revise its financial resolution regime in line with the Financial Stability Board’s recommendations.

Moody’s Credit Outlook on 15 and 19 Sep

[19 Sep] Parkson’s Disposal of Loss-Making Beijing Store Is Credit Positive; Malaysia Airports Holdings’ Weak Traffic Reflects Operating Challenges in Turkey, a Credit Negative; Singapore Banks Will Benefit from Improved Household Debt Metrics; Frasers Hospitality Trust’s Equity-Funded Acquisition of Australian Hotel Is Credit Positive.

[15 Sep] China Railway Group Wins Project in Laos, a Credit Positive; LG Chem’s Proposed Merger with LG Life Sciences Is Credit Negative; Doosan Bobcat’s IPO Plan Is Credit Positive; Russian Initiative to Differentiate Regulatory Regimes for Banks Is Credit Positive; Bosnia Gains IMF Disbursement, a Credit Positive.


 

RATING EVENTS

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AUSTRALIA
[20 Sep] Moody's assigns Baa1 rating to Transurban Finance Company's US144A senior secured notes offering; outlook stable
[19 Sep] Moody's assigns definitive Baa2 rating and stable outlook to NSW Electricity Networks Finance's senior secured notes
[14 Sep] Moody's assigns first-time Baa1 issuer rating to Goodman Australia Industrial Partnership; Outlook Stable

CHINA

[20 Sep] Moody's assigns definitive Baa3 rating to Bright Food's EUR notes
[20 Sep] Moody's assigns Ba1 to Country Garden's proposed USD notes
[14 Sep] Moody's reviews Shanghai International Port's A1 rating for downgrade on announced investment

INDIA

[20 Sep] Moody's assigns Ba2 rating to Delhi International Airport's proposed  bonds
[15 Sep] Moody's places Reliance Communications' Ba3 ratings under review for downgrade
[14 Sep] Moody's assigns definitive Baa3 (sf) to notes issued by India Standard Loan Trust XXX, AU Financiers-sponsored auto loan ABS in India

JAPAN
[21 Sep] Moody's reviews Arch Finance Limited Series 2010-001 repackaged notes for downgrade
[20 Sep] Moody's assigns definitive ratings to Asahi Kasei Hebel Haus® New Master Trust RMBS Series14 Senior Beneficial Interests
[16 Sep] Moody's assigns A3 (hyb) to Dai-ichi perpetual subordinated notes
[16 Sep] Moody's assigns provisional rating to Bora 3 backed by residential mortgages insured by JHF

SINGAPORE
[15 Sep] Moody's affirms Frasers Hospitality Trust's Baa2 issuer rating; outlook stable

 


 

ANNOUNCEMENTS

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ASIA PACIFIC
[19 Sep] Moody's requests comment on proposed methodologies for rating securities firms

AUSTRALIA
[16 Sep] Moody's: No rating impact on AB Funding following amendment

CHINA
[20 Sep] Moody's: Sunac's planned asset acquisitions are credit negative
[15 Sep] Moody's: GLP's Hillwood acquisition has no immediate impact on its ratings

INDIA
[20 Sep] Moody's & ICRA: India's step-wise reforms set in motion, but weak investment and banking risk may act as speedbreakers

MALAYSIA
[14 Sep] Moody's keeps MEXIM's multicurrency MTN program unchanged at (P)A3 following upsize

 


 

MOODY'S EVENTS

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Moody's Global Teleconference Series: Securities Firms Methodologies –  Requests for Comment (APAC)
Asia Pacific, 23 Sep

Moody’s Webcast: Auto Sector Faces Rising Credit Risks Due to Carbon Transition (APAC)
Asia Pacific, 27 Sep

Pre-Event Workshop: Moody’s APAC Structured Finance Conference 2016 – Asian Securitization and Covered Bonds Navigating Through Tumultuous Changes
Singapore, 27 Sep

Main Conference: Moody’s APAC Structured Finance Conference 2016 – Asian Securitization and Covered Bonds Navigating Through Tumultuous Changes
Singapore, 27 Sep

Moody’s Inside ASEAN – Spotlight on the Philippines: Key Credit Issues for the New Leadership
Manila, 27 Sep

Moody's Briefing: Global Shipping Industry - Negative Outlook Due to Low Freight Rates and Fall in EBITDA
Tokyo, 27 Sep

Sponsorship: ASIFMA Structured Finance Conference 2016 - Asian Securitization and Covered Bonds
Singapore, 28-29 Sep

Moody’s Annual India Credit Conference: Impact of Bond Market Reforms; Future Issuance Trends
Singapore, 6 Oct

Sponsorship: World Bank - Singapore Infrastructure Finance Summit: Connectivity and Sustainability in an Era of Volatile Markets and Disruptive Technologies
Singapore, 17 Oct

Moody's Briefing: Japanese Automakers - Industry Trends and How Ratings Consider Environmental Risks
Tokyo, 18 Oct

Click below to access teleconference / webcast replay. (*Free registration is required)

Moody’s Webcast - Moody's Assigns First-Time Ratings to Imperial Pacific

Moody’s Webcast - Taiwan Banks Steady Performance Amid Subdued Operating Environment (English)

Moody’s Webcast - Taiwan Banks Steady Performance Amid Subdued Operating Environment (Mandarin)

 


 

MOODY'S TRAINING SEMINARS

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HONG KONG
Advanced Bank Risk Analysts, 31 Oct-2 Nov
Moody’s Project Finance Masterclass, 31 Oct-2 Nov
Analyzing Sovereign and Country Risk, 3-4 Nov
Structured Finance, 16-18 Nov
Corporate Credit Rating Analysis, 28-30 Nov
Insurance Credit Analysis, 5-7 Dec
Fundamentals of Bank Credit Risk Analysis, 8-9 Dec

KUALA LUMPUR
Islamic Finance – Risk Management, 21-22 Nov
Islamic Finance – Sukuk: Theory and Practice, 23-24 Nov

SINGAPORE
Advanced Corporate Credit Analysis, 5-7 Oct
Fundamentals of Bank Credit Risk Analysis, 17-18 Oct
Insurance Credit Analysis, 19-21 Oct
Covenants & Documentation, 3 Nov
Structured Finance, 21-23 Nov
Advanced Bank Risk Analysis, 21-23 Nov
Analyzing Sovereign and Country Risk, 24-25 Nov
Fundamentals of Corporate Credit, 6-9 Dec
Corporate Credit Rating Analysis, 12-14 Dec
Covenants & Documentation, 15 Dec

SYDNEY
Advanced Corporate Credit Analysis, 10-12 Oct
Covenants and Documentation, 14 Oct
Insurance Credit Analysis, 28-30 Nov
Fundamentals of Bank Credit Analysis, 1-2 Dec

TOKYO

Fundamentals of Bank Credit Risk Analysis, 13-14 Oct
Moody’s Project Finance Masterclass, 26-28 Oct
Insurance Credit Analysis, 7-9 Nov
Credit Reasoning & Writing, 10-11 Nov
Corporate Credit Rating Analysis, 21-23 Nov
Fundamentals of Bank Credit Risk Analysis, 1-2 Dec

 


  CONTACT US Back to top button  
 

Asia Pacific Client Desk
Research & Subscriptions
+852.3551.3077

Kelly Moy
Associate Managing Director
North Asia
+852.3758.1323

Vineet Gupta
Vice President
India
+91.750.625.0104

Cynthia Zhao
Vice President
North China - Beijing
+86.10.6319.6566

Maria Lee
Vice President
South China - Hong Kong
+852.3758.1338

Yasushi Furuya
VP-Account Management
Japan
+81.3.5408.4272

James Flitton
Vice President
Singapore
+65.6398.8338

Miki Zhou
Vice President
Central China - Shanghai
+86.21.6101.0227

 


 

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