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This week’s research sees various reports on China, including a sovereign report which says that
if current measures on reform lead to a reallocation of labour and capital resources that shift credit towards sectors with higher productivity growth, it will support the Chinese government's credit quality by increasing its debt-carrying ability.
Other China reports include coverage of the investment funds sector, non-financial corporates, structured finance, power sector, and life insurance. We have published a total of six reports on China this last week. |
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We also look at the auto asset backed securities market in China, Australia, Japan and India, our poll results on participants in India’s structured finance market, tax and revenue issues facing various developing economies in Asia Pacific, and Singapore’s banks, including the outlook for its banking system.
In Australia, we look at the real estate investment trust sector and, in the area of Japanese life insurance, the profit results for its major companies.
On the events front, we held our 2018 Mid-Year China Credit Outlook Conference for Beijing on Tuesday, and you can now also register for Shanghai on 7 June, and Shenzhen on 11 June.
Best regards,
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
Government of Macao -- Aa3 stable
[6 June] The Government of Macao's credit profile is underpinned by the absence of government debt and fiscal surpluses; factors which support the build-up of large fiscal reserves.
Auto ABS -- Japan: Longer loan terms are credit negative, but eligibility criteria will limit risk
[5 June] The terms for Japanese auto loans will continue to increase gradually, with lower
monthly repayments, resulting in a rise in defaults for loans backing auto loan asset-backed securities (ABS) deals rated by Moody's, a credit negative.
Government of China: Change in China's economic structure is gathering pace, a credit positive
[5 June] If current measures lead to a reallocation of labour and capital resources that shift credit towards sectors with higher productivity growth, it will support the Chinese government's credit quality by increasing its debt-carrying ability.
Life Insurance - China Improving product mix and stabilizing asset risks drive change to stable outlook
[5 June] We expect that the moderate economy-wide build up in leverage, a shift to a more sustainable product mix, and a slowdown in investment allocation to high-risk assets will prevent a further deterioration in the creditworthiness of Chinese life insurers over the next 12-18 months.
Auto ABS — Asia Pacific: Sector update, Q1 2018 - Performance strong in China, Australia and Japan, improving in India
[4 June] Moody’s also expects performance to remain so across these markets, but to different degrees,
because of diverging economic growth trends.
Investment funds -- China: Long-term trends are positive, even if regulation slows short-term growth
[4 June] Measures imposed by the government to reduce risk in the financial sector will also support
growth in the long term as the sector normalizes.
Banking System Outlook - Singapore: Healthy economy and strong bank fundamentals underpin stable outlook
[4 June] Healthy economic growth will support the banks' asset quality, while higher interest rates and a decrease in impairment allowances will lift profitability.
Banks -- Singapore: FAQ: FRS 109's capital impact muted so far, but profitability will be more volatile
[1 June] The new accounting standard has had a limited impact on the banks' capitalization, because they had already pre-emptively downgraded and provisioned their problematic exposures ahead of the new rules.
Rated non-financial companies -- China: Credit Trend Monitor for 2018
[31 May] Credit conditions will remain stable in 2018 for the 12 sectors in which Moody’s
rated Chinese companies operate, while rating trends are also mostly stable.
Dai-ichi, Meiji Yasuda, Nippon, Sumitomo - Foreign bonds help boost core profit in fiscal 2017
[31 May] Earnings from foreign bonds helped boost core profits at four major Japanese life insurers, but low domestic interest rates will continue to pressure their investment yields.
China -- Power: Regulatory and operating challenges constrain credit quality of coal-fired gencos
[31 May] Delays in implementing on-grid tariff adjustments for electricity are weakening the credit quality of China's coal-fired generation companies, while higher fuel costs are reducing their profits.
Auto ABS - China: Reported figures understate recovery rates
[31 May] The recovery rates reported by Chinese auto loan asset-backed securities understate the actual amounts for recovered loans in default after the transaction is fully redeemed.
Mizuho Financial Group, Inc., BNP Paribas -- Peer comparison
[31 May] The stronger capitalization of BNP Paribas mitigates its greater level of asset risk when compared to Mizuho Financial Group, Inc., while Mizuho outperforms in funding and liquidity.
Sovereigns -- Developing Asia Pacific: Tax base broadening most likely to be effective in countries with strong tax administration
[31 May] For many sovereigns, measures to broaden the tax base are unlikely to boost fiscal strength unless accompanied by enhanced tax administration and measures that effectively manage expenditure growth
Structured Thinking: Asia Pacific
[31 May] The newsletter covers key developments in structured finance markets in China, Australia and Japan and notes that in China, issuance of residential mortgage-backed securities (RMBS) exceeded all other asset classes during January and March 2018 (Q1 2018), totaling RMB50.5 billion.
REITs -- Australia: Buybacks will weaken credit metrics to varying degrees
[30 May] The debt-funded unit buybacks by four rated Australian real estate investment trusts
will weaken their credit metrics, but their good operating performance will also partially allay such concerns.
Poll shows market expects India's securitization market to stay flat this year
[30 May] A poll at Moody’s recent conference in Mumbai showed that 66% of attendees expect
Indian securitization volumes will be relatively flat for the fiscal year ending March 2019.
Moody’s Credit Outlook on 31 May and 4 June
[4 June] China’s natural gas pricing mechanism reform is credit positive for suppliers; Mapletree Logistics Trust raises equity to fund acquisition of properties in China, a credit positive; and China’s new pricing mechanism for residential users is credit positive for the gas sector
[28 May] Sony's acquisition of a controlling stake in EMI Music Publishing is credit positive; Tenant debt restructuring is credit negative for ESR-REIT; Cooling of US-China trade dispute reduces risks for Chinese corporates; Restructuring of Singapore's Hyflux is negative for its creditors; and Mitsui Sumitomo Insurance's purchase of stake in BoCommLife benefits both buyer and seller |
Rating Events
Announcements
Moody's Events
Moody’s and CCXI 2018 Mid-Year China Credit Outlook Conference
Shanghai, 7 June
Shenzhen, 11 June
Moody’s and ICRA 4th Annual India Credit Conference
Mumbai, 7 June
Moody's Webcast (English) - China's Shadow Banking Sector
12 June 2018
Moody's Webcast (Putonghua) - China's Shadow Banking Sector
13 June 2018
Moody’s 4th Annual India Credit Conference (Singapore)
Singapore, 19 June
Moody’s Australian States and Infrastructure Briefing
Sydney, 20 June
Moody's Briefing - Korean Sovereign and Financial Sector
Seoul, 20 June 2018
Moody's Conference - China's New Administration: Challenges of Deleveraging and Global Relations
Hong Kong, 26 June 2018
Singapore, 4 July 2018
Inside ASEAN – Spotlight on Philippines
Manila, 28 June
Moody’s New Zealand Credit Briefing
Auckland, 7 August
Wellington,10 August
Click below to access teleconference / webcast replay. (*Free registration is required)
Moody's Webcast - China Banks: Behind the rating actions on 23 banks, 4 June 2018 |
Moody's Training Seminars
HONG KONG
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
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 |
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