Non-Property Companies -- China: Most Rated Companies Can Manage Modest
Renminbi Depreciation
[01 Sep] Most of the 70 rated Chinese utility, infrastructure and non-property companies that we analyzed have sufficient financial cushion to withstand a 10% depreciation of the renminbi. This 10% depreciation assumption includes the depreciation that followed the 11 August change in the mechanism for determining the daily fixing rate of the renminbi against the US dollar.
Property India: Cash Flows to Remain Weak Amid Flat Sales and High Costs
[01 Sep] India's largest property developers will continue to face a challenging operating environment over the next 12 months -- including weak cash flows, flat sales and stagnant prices.
Property Indonesia — Rupiah's Slide to 17-Year Low Is Credit Negative for Developers
[31 Aug] The rupiah's 13% year-to-date depreciation against the US dollar is credit negative for Indonesian property developers, because two-thirds of their debt is in US dollars, while their revenue is in rupiah.
Korean Non-Financial Companies: Credit Quality Will Remain Stable on Modest Leverage Improvement
[31 Aug] The expected improvement in financial leverage for many companies will be driven by a rebound in earnings, lower capex levels, and the depreciation of the Won. We also expect most Korean private companies to maintain their ratings over the next 12 months, after excluding government-related issuers.
Technology Services -- China: Online-to-Offline Platforms Create New Revenue Sources
[31 Aug] Investments by our rated Chinese internet companies in online-to-offline platforms these past two years will gain traction and boost their revenues in the next 12-24 months, and challenges, while apparent, are also manageable.
China Property Focus
[28 Aug] Sales for our rated Chinese property developers will stay healthy in 2H 2015, while the pressure on home prices will continue to ease. We expect that our rated developers will continue to deliver sales growth, taking advantage of the current strong sales momentum, while national sales will also stay healthy.
Downward Revisions to 2016 Global Economic Outlook
[28 Aug] We revised our forecast for GDP growth in the G20 economies to 2.8% next year, from 3.1%. Our revision mainly reflects the impact of a more marked slowdown now forecast in China and more prolonged negative effects of low commodity prices on G20 producers than earlier expected.
Structured Thinking Asia Pacific August 2015
[27 Aug] This latest edition examines the forms of credit enhancement used in auto loan asset backed securities in China and India. The two emerging auto loan ABS markets are very different.
Chinese Banks: China's Latest Rate Cuts Will Alleviate Liquidity Pressure in the Banking System
[27 Aug] The latest rate cuts by the People's Bank of China will add to system liquidity and further drive down borrowing costs, mitigating the ongoing growth slowdown.
Moody’s Credit Outlook on 27 and 31 Aug
[27 Aug] Russia's Renewed Ruble Depreciation Adds Pressure to Banks' Weak Fundamentals; SMBC and ORIX Will Increase Stakes in Cambodia’s Largest Bank, a Credit Positive; Australia's Proposed Rules for Interest-Only Mortgages Are Credit Positive for RMBS and Covered Bonds; and more.
[31 Aug] SoftBank's Alliance with Netflix Is Credit Positive; Korean Banks Face Pressure from Weakness in Currencies, Oil and Equities; Nippon Life Acquisition of Mitsui Life Would Allow Shareholders to Exit, a Credit Positive; Indonesia's Tax Cuts Will Spur Credit-Positive Economic Growth; and more. |
