Moody'says that the negative rating trend for Asian non-financial corporates in 2015 will worsen in 2016
Cites Demand weakening due to
- China's slowing economy
- Overcapacity and therefore depressed prices in the oil and commodities industries
"Upstream oil companies as well as metal and mining firms are the most pressured because of the protracted downturn in the oil and commodities industries ... Rising USD interest rates and a slower growth outlook for Asia and in particular China could lead to capital market volatility, resulting in higher credit risk, especially for issuers with weak operating performance or liquidity"
Its not all bleak, though:
- Expects continued monetary easing by the Chinese and EU authorities will keep the liquidity of corporates in Asia Pacific manageable
