Asia Pacific Weekly
April 4 - 11, 2018

This week we look at the push for alternative-fuel vehicles, which we view as posing challenges to a number of sectors in Japan. In particular, Japanese automakers and associated industries will make sizeable upfront investments in this segment over the next decade, while bearing the sizeable risk that these vehicles may ultimately not be taken up by the market. Our conference today in Tokyo will also address the issue.

Our Asian Liquidity Stress Indicator increased to 28.5% in March from 26.1% in February.


IN THIS EDITION

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This reading is above the trailing 12-month average of 26.5% for the first time since August 2016 and remains above the long-term average of 23.3%, highlighting the ongoing weakness in liquidity for many companies in Asia.

The latest edition of our quarterly Inside India newsletter includes analysis on the Indian government’s revised budget for fiscal 2019, on the renewable energy sector in India and China, as well as on the government’s plan to recapitalize all public sector banks.

On the events front, we will host a briefing on the Chinese and Hong Kong property markets on 24 April in Hong Kong, and a briefing on the Chinese and Indonesian property markets on 26 April in Singapore.

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.

Research

Asian Liquidity Stress Indicator: Asian LSI increased to 28.5% in March from 26.1% in February
[10 Apr] The reading is above the trailing 12-month average of 26.5% for the first time since August 2016 and remains above the long-term average of 23.3%, highlighting ongoing weakness in liquidity for many companies in Asia

Cross-Sector: Push for alternative-fuel vehicles presents challenges for Japan Inc.
[9 Apr] Over the next decade, Japanese auto manufacturers and associated industries will make sizeable upfront investments in alternative-fuel vehicle technologies while bearing the risk that these vehicles may ultimately not be taken up by the market.

Government of New Zealand – Aaa stable: Annual credit analysis
[6 Apr] New Zealand's credit profile reflects its very high economic resilience, very strong institutions and policy effectiveness, and strong fiscal position when compared with similarly rated peers.

Banks – Philippines: Robust loan growth lifts earnings in 2017 but will continue to weigh on capitalization
[4 Apr] Capital ratios of Philippine banks will stay pressured, because increases in retained earnings will not prove sufficient to cover the banks' rapid asset growth, against the backdrop of their low cost efficiency.

Inside India: March 2018
[4 Apr] Our a quarterly publication examines the major credit trends in India through recently published Moody's reports.

Moody’s Credit Outlook on 5 and 9 April

[9 Apr] Mongolia’s delays and reversals on some structural reforms, if prolonged, are credit negative; India’s creation of an investment-fluctuation reserve will benefit banks; For Singapore’s banks, a decline in slow payments by corporations is credit positive.

[5 Apr] Malaysian banks’ latest stress test results are credit positive; Hyundai Steel’s planned sale of Hyundai Mobis stake is credit positive; Fujifilm’s acquisition of biotechnology companies from JXTG is credit positive for both.

Rating Events

AUSTRALIA
[9 Apr] Moody's: No rating impact on Victoria Teachers Trust Series 2012-1 after Uplift
[6 Apr] Moody's upgrades BlueScope's ratings to Baa3; outlook stable
[5 Apr] Moody's: No rating impact on Series 2008-1M WST Trust after collateral substitution

CHINA
[10 Apr] Moody's assigns B2 to Powerlong's proposed USD notes
[10 Apr] Moody's assigns B2 to China SCE's proposed notes
[9 Apr] Moody's affirms Agricultural Bank of China's A2 deposit rating; revises outlook to positive
[6 Apr] Moody's upgrades Agile's corporate family rating to Ba2; outlook stable

HONG KONG
[10 Apr] Moody's assigns A2 rating to CK Hutchison's proposed EUR notes; outlook stable
[4 Apr] Moody's: COFCO Property's proposed acquisition of Joy City is credit positive for COFCO HK

INDIA
[9 Apr] Moody's affirms Tata Chemicals' Ba1 CFR; outlook stable

INDONESIA
[5 Apr] Moody's downgrades Matahari Putra Prima to B3, places rating on review for further downgrade

JAPAN
[9 Apr] Moody's assigns a definitive rating to USD-denominated SMBC Guarantee Linked Trust Notes
[5 Apr] Moody's assigns a provisional rating to Auto Loan ABS Program 1804 Series

KOREA
[10 Apr] Moody's assigns A1 to Korea Resources' MTN drawdown
[9 Apr] Moody's assigns A3 to SK Telecom's USD notes
[4 Apr] Moody's assigns first-time ratings to Transport and Development Bank

MONGOLIA
[4 Apr] Moody's assigns first-time ratings to Transport and Development Bank

SINGAPORE
[10 Apr] Moody's revises ESR-REIT's outlook to stable from negative; affirms Baa3 issuer rating

VIETNAM
[6 Apr] Moody's takes positive rating actions on four Vietnam bank

Announcements

AUSTRALIA
[5 Apr] Moody's comments on Scentre's announced share repurchase programme

JAPAN
[4 Apr] Moody's: Tokyo Electric Power's credit quality unaffected by transfer of thermal power plants
[4 Apr] Moody's to host first-ever conference on electric vehicles and their impact on Japanese industry

KOREA
[4 Apr] Moody's: Disposal of non-core investments is credit positive for KCC Corp

Moody's Events

Moody's Conference: Japan Inc.'s Electric Vehicle Challenge
Tokyo, 11 April

Sponsorship: 2018 China asset-backed securitization industry annual conference
Beijing, 14-15 April

Moody’s Briefing – China and Hong Kong Property Briefing
Hong Kong, 24 April

Moody's Briefing – China and Indonesia Property Briefing
Singapore, 26 April

Moody's Islamic Finance Briefing
Kuala Lumpur, 8 May

Moody's and ICRA India Securitization Conference
Mumbai, 15 May

Moody’s and ICRA 4th Annual India Credit Conference
Mumbai, 7 June 2018

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

Moody’s Webcast: Hanwha Life Insurance Co., Ltd

Moody's Training Seminars

HONG KONG
Advanced Bank Risk Analysis, 2-4 May
Corporate Debt Restructuring, 3-4 May
Corporate Cash Flow Analysis, 8-10 May
Analyzing Sovereign and Country Risk, 8-9 May
Corporate Credit Rating Analysis, 9-11 May
Fundamentals of Bank Credit Risk Analysis, 10-11 May
Covenants & Documentation, 4 Jun
Fundamentals of Corporate Credit, 11-14 Jun
Advanced Corporate Credit Analysis, 16-18 Jul
Counterparty Credit Risk, 14-15 Aug
Introduction to Derivatives, 16-17 Aug
Bank Regulation: Impact and Implications of Evolving Regimes, 16-17 Aug
Advanced Corporate Credit Analysis, 29-31 Aug
Insurance Credit Analysis, 10-12 Sep
Corporate Cash Flow Analysis, 9-11 Oct
Advanced Bank Risk Analysis, 29-31 Oct
Corporate Credit Rating Analysis, 31 Oct-2 Nov
Analyzing Sovereign and Country Risk, 1-2 Nov
Moody’s Project Finance Masterclass, 3-5 Dec

SINGAPORE
Analyzing Sovereign and Country Risk, 16-17 Apr
Advanced Bank Risk Analysis, 18-20 Apr
Fundamentals of Corporate Credit, 23-26 Apr
Bank Regulation: Impact and Implications of Evolving Regimes, 26-27 Apr
Corporate Credit Rating Analysis, 2-4 May
Risk Culture Building, 12-13 Jun
Corporate Cash Flow Analysis, 12-14 Jun
Structured Finance, 20-22 Jun
Fundamentals of Bank Credit Risk Analysis, 16-17 Oct
Bank Regulation: Impact and Implications of Evolving Regimes, 18-19 Oct
Advanced Bank Risk Analysis, 19-21 Nov
Analyzing Sovereign and Country Risk, 22-23 Nov
Corporate Cash Flow Analysis, 27-29 Nov
Corporate Credit Rating Analysis, 27-29 Nov
Covenants & Documentation, 30 Nov
Fundamentals of Corporate Credit, 11-14 Dec

SYDNEY
Insurance Credit Analysis, 11-13 Jun
Fundamentals of Bank Credit Risk Analysis, 14-15 Jun
Fundamentals of Corporate Credit, 28-31 Aug
Insurance Credit Analysis, 3-5 Sep
Analyzing Sovereign and Country Risk, 6-7 Sep
Fundamentals of Bank Credit Risk Analysis, 29-30 Nov

CONTACT US
Cynthia Zhao
Senior Vice President
North China - Beijing
+86.10.6319.6566
James Flitton
Vice President
Singapore
+65.6398.8338
Kelly Moy
Associate Managing Director
North Asia
+852.3758.1323
Maria Lee
Senior Vice President
South China - Hong Kong
+852.3758.1338
Yasushi Furuya
Vice President
Japan
+81.3.5408.4272
Vineet Gupta
Vice President
India
+91.750.625.0104
Asia Pacific Client Desk
Research & Subscriptions
+852.3551.3077
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