This week’s research covers the Asian Liquidity Stress Indicator for June, which showed its weakest level since December 2016. We also published our annual credit analysis for China.
We also look at the outlook for the global green bond market, which continues to grow as governments seek to promote sustainable policy agendas, encourage private capital into low-carbon and climate-resilient infrastructure.
For Australia, we look at the outlook for the airport sector, and at a proposal to limit unsuitable credit card lending.
We also discuss Asia bond covenant quality in our quarterly report, and the state of Hong Kong’s property market in light of a new tax on vacant residential assets.
For events, we have a Moody's Webcast for Shinhan Financial Group Co., Ltd. 11 July 2018
Managing Director – Regional Head Asia Pacific
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Banks -- Australia: Regulator's proposal to limit unsuitable credit card lending is credit positive
[10 July] Measures proposed by the Australian Securities and Investments Commission (ASIC) to limit unsuitable credit card lending would help reduce asset quality risk at the country's banks, a credit positive
Green Bonds -- Sovereign - Sovereign green bond market on course for critical mass, but challenges remain
[9 July] The pace of sovereign green bond issuance is set to accelerate as governments seek to promote sustainable policy agendas, encourage private capital into low-carbon and climate-resilient infrastructure.
Asian Liquidity Stress Indicator: Asian LSI weakened to 30.9% in June from 29.0% in May
[9 July] Moody’s Asian Liquidity Stress Indicator weakened to 30.9% in June 2018 from 29.0% in May 2018 and is now above 30% for the first time since December 2016, while issuance was largely unchanged.
[6 July] The latest edition compiles key research reports relevant to India over the last three months, including the results of a Moody's poll of market participants.
Government of China -- A1 stable: Annual credit analysis
[5 July] China's credit profile reflects a number of strengths, including the vast size and robust growth rate of its economy, denoting very high shock absorption capacity, large domestic savings, and ample foreign exchange reserves.
Covenants -- Asia: Q2 covenant quality continues to falter -- now at all-time weakest level
[5 July] The average covenant quality score for Asian high-yield bonds that Moody's scored and which cleared the market in Q2 2018 was 3.16 (moderate).
Airports -- Australia: 2019 Outlook stable as growth remains supportive and risks are manageable
[5 July] Strong growth in international passenger traffic and non-aeronautical activities support the stable outlook, which is tempered somewhat by large capital expenditure programs and elevated regulatory uncertainty.
Property -- Hong Kong: Tax on vacant primary residential units is manageable for our rated developers
[4 July] The government's newly introduced tax on new vacant private residential units (primary flats) will have a moderate and manageable impact on Moody's-rated Hong Kong developers.
India – Heard from the Market: Oil prices, pace of bank balance sheet clean-up and investment remain key risks
[4 July] Market participants in response to a Moody's poll in Singapore and Mumbai see high oil prices as the main risk to India's economy, but exhibited differences on the second major risk.
Government of Taiwan
[4 July] Taiwan's credit profile reflects its very high per-capita incomes, robust institutions and modest debt levels.
Moody’s Credit Outlook on 9 July
[9 July] Fosun's proposed listing of culture and tourism business is credit positive; Kogas' timely gas price increase to reflect higher costs is credit positive; Singapore banks will benefit from tighter regulations to cool property market; and Capital raising will challenge Vietnam's banks after stock market tumble
Moody's Training Seminars
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
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
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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