Moody's Investors Service's 2015 outlook for Asia's non-financial corporates (excluding Japan) remains stable.
Moody's expects a modest improvement in global external demand led by the US, still-accommodative global monetary conditions, and an orderly economic rebalancing in China in the year ahead.
"Asian corporates will retain sufficient liquidity and financing access to manage their borrowing and financing need during the year," says Philipp Lotter, a Moody's Managing Director, "We also expect leverage to stabilize and cross-border financing needs to moderate."
The majority of Moody's corporate rating outlooks, at over 80%, is stable. According to Moody's, most industry and corporate outlooks are stable. Large industries including steel, telecommunications, utilities and refining have stable outlooks. Only coal and Chinese property have negative outlooks.
However, a negative bias remains with almost twice as many rated companies on negative outlook or review for downgrade when compared to positive or review for upgrade, notes the rating agency.
Despite looming US monetary policy changes, Moody's expects the current accommodative global monetary to persist, with offshore funding costs to remain well below the historical average.
Still, domestic factors will be increasingly important during 2015, notes the rating agency.
"Adequate liquidity, healthy access to bank funding, and market-oriented reforms will help most rated Chinese corporates absorb a measured slowdown in growth and weakness in the property market," says Gary Lau, a Moody's Managing Director.
"That said, weaker names in sectors such as property and mining will continue to face downward ratings pressure on the back of China's economic rebalancing away from investment and credit-led growth," adds Lau.
Elsewhere in the region, Moody's expects that India's economic recovery, enhanced access to global capital markets and successful implementation of pro-market policies by the new administration will lead to improved corporate cash flows.
In addition, the economic stimulus plan in Korea will invigorate its domestic demand-centered industries, says Moody's.
Moody's expects a modest improvement in global external demand led by the US, still-accommodative global monetary conditions, and an orderly economic rebalancing in China in the year ahead.
"Asian corporates will retain sufficient liquidity and financing access to manage their borrowing and financing need during the year," says Philipp Lotter, a Moody's Managing Director, "We also expect leverage to stabilize and cross-border financing needs to moderate."
The majority of Moody's corporate rating outlooks, at over 80%, is stable. According to Moody's, most industry and corporate outlooks are stable. Large industries including steel, telecommunications, utilities and refining have stable outlooks. Only coal and Chinese property have negative outlooks.
However, a negative bias remains with almost twice as many rated companies on negative outlook or review for downgrade when compared to positive or review for upgrade, notes the rating agency.
Despite looming US monetary policy changes, Moody's expects the current accommodative global monetary to persist, with offshore funding costs to remain well below the historical average.
Still, domestic factors will be increasingly important during 2015, notes the rating agency.
"Adequate liquidity, healthy access to bank funding, and market-oriented reforms will help most rated Chinese corporates absorb a measured slowdown in growth and weakness in the property market," says Gary Lau, a Moody's Managing Director.
"That said, weaker names in sectors such as property and mining will continue to face downward ratings pressure on the back of China's economic rebalancing away from investment and credit-led growth," adds Lau.
Elsewhere in the region, Moody's expects that India's economic recovery, enhanced access to global capital markets and successful implementation of pro-market policies by the new administration will lead to improved corporate cash flows.
In addition, the economic stimulus plan in Korea will invigorate its domestic demand-centered industries, says Moody's.
