Moody’s Investors Service says that the default rate for Asian high-yield non-financial corporates will remain low, registering 2.9% at end-2017.
“The low projected default rate reflects broad-based global growth, the
recovery of commodity prices, and our expectation of cautious monetary
tightening in major economies, including the US, China and EU,” says
Clara Lau, a Moody’s Group Credit Officer.
“And, the gradual normalization of monetary policy in these major economies will support near-term market liquidity,” adds Lau.
“Meanwhile, a buoyant bond market since the start of 2017 has allowed many Asian
companies to raise funds to meet their refinancing and capital needs; thereby easing liquidity pressure and lowering default risks.”
Moody’s analysis is contained in its just-released report titled “Default
Report — Asian high-yield non-financial corporates’ default rate to
remain low at end-2017,” and is authored by Lau.
On metals & mining companies which were major default contributors in the
past two years , Moody’s report says that easing pressure on such
businesses because of the bottoming out of commodity sectors and recovery
in commodity prices will help keep the overall default rate low.
Moody’s points out that the Asian trailing 12-month non-financial
high-yield corporate default rate was at 1.5% at end-June 2017. This
result was lower than the 4.9% at end-June 2016, and in line with the
default trend in Moody’s global and US portfolios.
Moody’s global and US speculative-grade default rates fell to 3.2% and
3.8% at end-June 2017 from 4.7% and 5.5% at end-June 2016.
In Europe, the default rate stayed flat at 2.7% at end-June 2017 versus
2.6% the year before.
Thailand’s economic growth expected to return to 2019 levels in mid-2023
Although the economy would recover next year, the recovery is still substantially below potential level resulting in a large output loss and could affect Thailand’s potential economic growth in the future with the economy expected to return to 2019 levels in mid-2023.
The Siam Commercial Bank (SCB), one of Thailand’s largest commercial banks, said in its latest economic outlook report that the country’s economy may wait until the second semester of 2023 to return to 2019 growth levels.(more…)
S&P maintains Thailand’s credit rating at BBB+ with stable outlook
Standard and Poor’s (S&P) maintained Thailand’s credit rating at BBB+ . The global rating firm expects the country’s gross domestic product (GDP) to grow at 1.1% this year, with a more optimistic growth at 3.6% per year from 2022 to 2024.
Standard and Poor’s (S&P) maintained Thailand’s credit rating at BBB+ . The global rating firm expects the country’s gross domestic product (GDP) to grow at 1.1% this year, with a more optimistic growth at 3.6% per year from 2022 to 2024.(more…)
Can border reopening revive tourism in South-East Asia?
In Thailand, where pre-pandemic tourism accounted for 11-12% of GDP, the country lost an estimated $50bn last year as Covid-19...
Thailand dropped from UK’s tough covid-19 travel ‘red list’
Earlier, Thailand was listed among countries with high infection levels that were put on a ‘red list’, requiring arrivals to...
The ASEAN-Russia Trade and Investment Cooperation Work Program
ASEAN and Russia recently agreed to enhance and widen economic cooperation at the 10th ASEAN Economic Ministers (AEM)-Russia Consultations held...
Flexible Workspace Startup Worklounge Debuts with 20+ Luxury Member Lounges in Thailand
Worklounge launches a premium membership granting remote professionals and executives access to exclusive hotel lounges across Thailand. Their platform is...
5 insights to guide ASEAN’s digital generation in a post-pandemic world
We surveyed 86,000 people from six ASEAN countries about their views for a post-pandemic world. The ASEAN Digital Generation Report...