Moody's Investors Service
ASIA PACIFIC WEEKLY
Oct 4 - 11 2017
 

In this week’s research, we look at the performance of Chinese banks between January and June 2017 and conclude that regulatory measures implemented since January 2017 have been successful in containing financial risks and unwinding some shadow banking and interbank activities.
We also look at China’s insurance sector and note that it sees mixed prospects for solvency ratios, with the ratio rising in the first half of 2017 for life insurers, ending the decline seen in 2016, while that for property and casualty (P&C) companies continued to fall.

We compare Mitsubishi UFJ Financial Group, Inc. and JPMorgan Chase & Co, looking at their different risk profiles, but equal standalone creditworthiness. In another report, we look at how Japanese insurers  are showing a growing commitment to expanding their overseas operations, leading to Moody's incorporating assumptions of stronger support by these companies for their foreign subsidiaries.

We also released a report on the world’s frontier markets, concluding that they will show differentiated exposure to rising interest rates globally, just as they demonstrated divergent shock absorption capacities during the commodity price slump of 2014-2015

On the events front, this week, we held a briefing on the trends and rising risks for Japanese automakers and will on 17 October hold another Japan-related briefing on the Japan banking system outlook.

 

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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Frontier markets: Divergent credit paths
[10 Oct] Frontier markets will show differentiated exposure to rising interest rates globally, just as they demonstrated divergent shock absorption capacities during the commodity price slump of 2014-2015

China’s Insurance Sector -- Solvency decline ends for life insurers, continues for P&C and reinsurers
[10 Oct] The ratio rose in the first half of 2017 for life insurers, ending the decline seen in 2016, while that for property and casualty (P&C) companies continued to fall.

Default Research -- Global: Default and recovery rates for project finance bank loans, 1983-2015: Infrastructure sector hurt by demand risk
[9 Oct] Public private partnerships (PPPs) and other project financings that are exposed to volume and price risks have a substantially higher default risk in the first years after financial close than those funded by availability payments.

Proposed Update to Notching Practices for Insurance Holding Company Securities
[9 Oct] Moody's is seeking feedback from market participants on an update to its notching practices for rating insurance holding company securities. The update would introduce narrower notching in jurisdictions where there is enhanced regulatory supervision at a group-wide level.

Banks — China: Improved asset quality and funding profile in the first half, but weakened profitability
[9 Oct] The performance for the six months between January and June 2017 demonstrates that regulatory measures implemented since January 2017 are successful in containing financial risks and unwinding some shadow banking and interbank activities.

Mitsubishi UFJ Financial Group, Inc., JPMorgan Chase & Co.: Peer comparison: Different risk profiles but equal standalone creditworthiness
[5 Oct] MUFG's a3 baseline credit assessment (BCA) reflects its low-risk business model, while JPM's identical BCA considers that its sound capitalization, profitability and liquidity mitigate risks from its exposure to the capital markets.

MS Amlin, Protective, Reliance, Sompo International, StanCorp and Symetra: Japanese insurers show stronger support for overseas subsidiaries
[4 Oct] Japanese insurers are showing a growing commitment to expanding their overseas operations, leading to Moody's incorporating assumptions of stronger support by these companies for their foreign subsidiaries.

Moody’s Credit Outlook on 9 and 5 October

[9 Oct] Nissan’s Million-Vehicle Recall for Re-inspection Is Credit Negative; and TEPCO Receives Preliminary Approval to Restart Two Nuclear Reactors, a Credit Positive; and

[5 Oct] Toshiba Memory Sale Is Credit Negative for WDC, Positive for Seagate; For Reliance Communications, Cancellation of Aircel Merger Is Credit Negative Banks; and Indian Banks’ Sale of Stakes in Insurance Subsidiaries Will Strengthen Their Loss-Absorbing Buffers


 

RATING EVENTS

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AUSTRALIA
[9 Oct] Moody's takes rating action on Ausdrill
[6 Oct] Moody's takes action on Sydney Water
[6 Oct] Moody's takes rating action on Ausgrid Finance Pty Ltd
[5 Oct] Moody's assigns provisional rating to RMBS to be issued by Citigroup

CHINA
[9 Oct] Moody's affirms China CITIC Bank International's Baa1 ratings and revises outlook to stable

INDIA
[10 Oct] Moody's assigns first-time Ba1 rating to GMR Hyderabad International Airport Limited
[9 Oct] Moody's assigns first-time Baa3 rating with a positive outlook to National Highways Authority of India

KOREA
[10 Oct] Moody's assigns provisional (P)Aa1 to KHFC's mortgage covered bonds

SINGAPORE
[5 Oct] Moody's assigns definitive Aaa to OCBC's Series 2 mortgage covered bonds

SOLOMON ISLANDS
[10 Oct] Moody's affirms Solomon Islands' B3 issuer rating; maintains stable outlook

 


 

ANNOUNCEMENTS

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AUSTRALIA
[9 Oct] Moody's comments on Series 2008-1M WST Trust after collateral substitution

MALAYSIA
[10 Oct] Moody's: Genting Overseas Holdings' ratings unchanged following tap bond issuance

 


 

MOODY'S EVENTS

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Moody’s Webcast - Earnings for Asia’s refining and marketing companies will see modest improvement over next 12-18 months
Asia Pacific, 11 October

Moody's Briefing: Japanese Automakers – Industry trends and rising risk in the global automobile sector
Tokyo, 11 October

Moody's Briefing: Japan Banking System Outlook – Ample liquidity and low asset risks are main strengths
Tokyo, 17 October

Moody's Briefing: Japan’s Electric Utilities
Tokyo, 24 October

Moody’s APAC Insurance Summit
Tokyo, 31 October
Hong Kong, 2 November
Beijing, 7 November

Moody’s Briefing: Asian High Yield Corporates’ Trends & Risks
Singapore, 31 October
Hong Kong, 15 November

Pre-Briefing Workshop: Asian High Yield Bond Covenants
Singapore, 31 October
Hong Kong, 15 November

Moody’s Sponsored: Euromoney's 18th Annual Asia Pacific Airfinance Conference
Hong Kong, 1 November 2017

Moody’s & KIS 2018 Korea Credit Outlook Conference
Seoul, 15 November 2017

Moody’s Briefing: Japanese General Trading Companies
Tokyo, 22 November

3rd Annual Moody’s Inside ASEAN – Spotlight on Indonesia
Jakarta, 28 November

Moody's Briefing: Japan’s Real Estate Market
Tokyo, 29 November

Click below to access teleconference / webcast replay. (*Free registration is required)
Moody's Webcast: Assessing China’s Belt and Road Initiative: Largely credit positive for China and recipient countries, but challenges evident (English)
Moody's Webcast: Yihua Enterprise (Group) Co., Ltd.: Behind the first-time B2 rating
Moody's Webcast: Nan Hai Corporation Limited: Behind the first-time B1 corporate family rating and B2 bond rating

 


 

MOODY'S TRAINING SEMINARS

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HONG KONG
Advanced Financial Statement Analysis, 16-18 Oct
Structured Finance, 16-18 Oct
Advanced Bank Risk Analysis, 30 Oct-1 Nov
Corporate Credit Rating Analysis, 1-3 Nov
Analysing Sovereign and Country Risks, 2-3 Nov
Insurance Credit Analysis, 4-6 Dec
Fundamentals of Bank Credit Risk Analysis, 7-8 Dec

SINGAPORE
Advanced Financial Statement Analysis, 11-13 Oct
Structured Finance, 11-13 Oct
Fundamentals of Bank Credit Risk Analysis, 16-17 Oct
Insurance Credit Analysis, 18-20 Oct
Advanced Bank Risk Analysis, 20-22 Nov
Analysing Sovereign and Country Risk, 23-24 Nov
Corporate Credit Rating Analysis, 27-29 Nov
Covenants and Documentation, 30 Nov
Fundamentals of Corporate Credit, 11-14 Dec

SYDNEY
Advanced Corporate Credit Analysis, 11-13 Oct
Insurance Credit Analysis,  27-29 Nov
Fundamentals of Bank Credit Risk Analysis, 30 Nov-1 Dec

TOKYO
Insurance Credit Analysis, 6-8 Nov
Credit Reasoning & Writing, 9-10 Nov
Fundamentals of Bank Credit Risk Analysis, 4-5 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
Senior Vice President
North China - Beijing
+86.10.6319.6566

Maria Lee
Senior Vice President
South China - Hong Kong
+852.3758.1338

James Flitton
Vice President
Singapore
+65.6398.8338

Yasushi Furuya
Vice President
Japan
+81.3.5408.4272

 


 

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