Asian corporates' credit risks rise in Q4

SYDNEY:
The figure of Asiatic corporates with negative recognition mentalities rose in the fourth
quarter, and the tendency could garner gait in 2008 if disturbance in planetary credit
markets persists, evaluations federal agency Moody’s said in a report. “Heading into 2008, the
positive personal effects of Asia’s robust economical public presentation could be dampened
if tight liquidness thrusts involvement costs higher, or if rising natural materials
costs go on to squash margins,” said Clara Lau, main recognition officer
and senior vice-president astatine Moody’s. The study noted that the
number of Asiatic corporates on negative mentality had risen to 14 in the fourth
quarter, from 9 at the end of the 3rd quarter. Still, Australian corporations
were more than likely to see recognition downgrades or negative mentalities than their Asian
counterparts in the twelvemonth ahead because of their trust on debt, the report
said. At present, 20% of
Moody’s Aussie and New Seeland portfolio of companies was either on
review for a downgrade or on negative outlook, compared with 12% of Asian
corporates showing nega-tive implications, Moody’s said. “Due to the radioactive dust from
the United States subprime crisis, Australian rated companies â€" when compared with
Asian corps â€" human face more than exposure as they, as well as the banking
sector, are more reliant on on working capital marketplace funding,” said
Lau.