Moody's Investors Service
China Credit Weekly
Jan 10 - 17, 2018

This week we published our monthly Asian Liquidity Stress Indicator (LSI), which improved to 26.2% in December from 30.3% at year-end 2016. The reading – although above the long-term average of 23.1% - continues to indicate in liquidity for many companies in the region.

We also assigned first-time ratings to China Ping An Insurance Overseas Holdings and Sunny Optical Technology (Group) Company Limited, with a replay of our webcast on Sunny Optical available here. We also upgraded Fosun International on an improved business profile, which should in turn reduce volatility in its future performance.

On the events front, our Asia Credit Outlook Conference takes place in Singapore next week and in Hong Kong on 31 January. Registration is also open for the pre-conference workshops in both Singapore and Hong Kong on the topic of Chinese local government financial vehicles (LGFVs).

 

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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Asian Liquidity Stress Indicator: Asian LSI improves to 26.2% in December from 30.3% at year-end 2016
[10 Jan] The indicator fell to 26.2% in December 2017 from 30.3% at the end of 2016, but was still above the long-term average of 23.1%, highlighting ongoing weakness in liquidity for many companies in Asia.

State-owned enterprises (SOEs) — China: Leverage will continue to decline gradually for most rated SOEs through 2018
[8 Jan] Of the 53 Chinese state-owned enterprises (SOEs) rated by Moody’s, 35 will show lower leverage levels at the end of 2018 versus the end of 2016, as they grow EBITDA and slow debt growth.

Moody’s Credit Outlook on 11 and 15 January

[15 Jan] Taiwan’s higher foreign-exchange reserve requirement will help reduce insurers’ currency risk; Vietnam’s anti-graft efforts underscore ongoing focus on strengthening competitiveness; Union Bank’s capital raise will restore buffers.

[11 Jan] China’s railway infrastructure spending benefits railway construction companies; China implements Basel Committee framework for controlling large exposures, curtailing bank risk; China’s tighter regulation on banks’ enstrusted loans is credit positive.

 


 

RATING EVENTS AND ANNOUNCEMENTS

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[16 Jan] Moody's upgrades Fosun International to Ba2; outlook stable
[16 Jan] Moody's assigns B3 rating to Si Chuan Province JuYang Group Limited's USD notes
[15 Jan] Moody's: Geely's rating unaffected by positive profit alert and proposed USD bond issuance
[12 Jan] Moody's: No rating impact on Sinochem CP following another amendment
[12 Jan] Moody's assigns definitive B3 to Ruyi's USD notes
[11 Jan] Moody's: Anhui Conch's A3 rating will be supported by stable cement prices over the medium term
[11 Jan] Moody's assigns first-time Baa2 issuer rating to China Ping An Insurance Overseas Holdings, outlook stable
[11 Jan] Moody's assigns B2 to Golden Wheel's proposed bond issuance
[11 Jan] Moody's assigns provisional ratings to Ford-sponsored auto loan ABS in
China: Fuyuan 2018-1 Retail Auto Mortgage Loan Securitization Trust
[10 Jan] Moody's: Hilong's ratings unaffected by tap bond issuance
[10 Jan] Moody's assigns first-time Baa2 issuer rating to Sunny Optical; outlook stable

 


 

MOODY’S events

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Moody’s APAC Webcast – Latin America Sovereign Credit 2018
Asia Pacific, 17 Jan

Moody’s 2018 Asia Credit Outlook Conference
Singapore, 25  January
Hong Kong, 31 January

Pre-Conference Workshop: Chinese local government financing vehicles (LGFVs)
Singapore, 25  January
Hong Kong, 31 January

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

Moody’s Webcast: Sunny Optical Technology (Group) Company Limited: Behind the first-time Baa2 issuer rating

Moody’s Webcast: APAC Sovereign 2018 Outlook: Outlook stable as favorable growth balances high leverage

 


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Jenny Shi (史季)
Managing Director
Country Manager China
+86.10.6319.6588

Maria Lee (李颂文)
SVP-Head of Relationship Mgmt
Hong Kong
+852.3758.1338

Cynthia Zhao (赵欣)
SVP-Head of Relationship Mgmt
Beijing
+86.10.6319.6566

Asia Pacific Client Desk
Research & Subscriptions
+852.3551.3077

 

 


 

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