Connect with us

Banking

Moody’s outlook for APAC corporates remains negative in 2020

Moody’s Investors Service says in a new report that overall credit conditions for APAC non-financial companies will weaken in 2020

Avatar

Published

on

• While positive, the US-China trade agreement will not resolve core differences, dampening business sentiment globally 

• Easing fiscal and monetary policies by major central banks provide near-term liquidity, supporting credit and financial market stability

Moody’s Investors Service says in a new report that overall credit conditions for APAC non-financial companies will weaken in 2020 amid slowing economic growth, continued trade policy uncertainty and geopolitical disputes.

“Global economic growth will remain lackluster, with growth in the US and China decelerating to 1.7% and 5.8% respectively in 2020,”

Clara Lau, a Moody’s Group Credit Officer and Senior Vice President.

And although positive, the first-phase US-China trade agreement will not resolve the core differences between the two countries — in particular on future technology competition.

Thus, policy uncertainty will persist, dampening business and investment sentiment, and adversely affecting the earnings growth and profitability of corporates,” adds Lau.

Central banks to maintain accommodative monetary policies

That said, Moody’s expects major central banks, including the US Federal Reserve, the European Central Bank and the Bank of Japan, will maintain accommodative monetary policies to provide near-term liquidity, supporting growth as well as credit and financial market stability.

Moody’s further expects most rated companies will be better equipped than their industry peers to maintain access to funding and withstand negative economic developments, but funding conditions for weaker companies will tighten.

Ratings with negative implications in Moody’s Asia Pacific non-financial corporate portfolio rose to 17% at the end of 2019 from 10% at the end of 2018.

As a result, the share of ratings with a stable outlook declined to 79% at the end of 2019 from 85% at the end of 2018, a record low since 2016. Across sectors, the automotive industry will be under the most pressure.

The share of ratings with negative implications was 41% at the end of 2019. In 2019, the rating trend for Moody’s-rated APAC corporate portfolio was negative as the trend notably worsened in Q3 2019. There were 128 negative and 48 positive rating actions during the year, of which China (38), India (24) and Japan (21) were the three main contributors, accounting for over 60% of total negative actions.

Advertisement
Comments

Banking

Thai economy continued on a decelerating trend in January

In January 2020, the Thai economy continued to be on a decelerating trend According to a Press Release by the Bank of Thailand

Avatar

Published

on

According to the Press Release on the Economic and Monetary Conditions for January 2020 (Bank of Thailand), the Thai economy continued on a path of deceleration in January, contracting from the previous month in the value of merchandise exports excluding gold, manufacturing production, private investment indicators, and public spending.

(more…)

Continue Reading

Banking

Thailand’s banks to reach unbanked customers

In this Global Platform video, Tan Choon Hin, CEO of United Overseas Bank Thailand, discusses industry trends across ASEAN, including regional integration and the push towards Industry 4.0.

Oxford Business Group

Published

on

For Thailand, the digitalisation strategy that is being pursued under Thailand 4.0 is improving internet infrastructure, which in turn is opening up opportunities for digital banking.

(more…)

Continue Reading

Banking

Thai banks slash growth forecast around 2%

Thai growth may be around 2% or less, said two major Thai commercial banks and a senior official of the Bank of Thailand.

Bahar Karaman

Published

on

Several major Thai banks have drastically reduced their GDP growth forecast for 2020 citing the coronavirus epidemic, drought and fiscal delays.

(more…)

Continue Reading

Must Read

Upcoming Events

Mar 11

Food science conferences

March 11 @ 8:00 am - March 12 @ 5:00 pm BMT
Mar 11

Food science conferences

March 11 @ 9:00 am - March 12 @ 5:00 pm BMT
Mar 22

41st World Dental Science and Oral Health Congress

March 22 @ 9:30 am - March 23 @ 5:00 pm BMT
Mar 26

8th Anti-Corruption Compliance Asia Pacific Summit 2020

March 26 @ 9:00 am - March 27 @ 5:30 pm SMT

Press Release

Subscribe via Email

Enter your email address to subscribe and receive notifications of new posts by email.

Join 12,191 other subscribers

Trending