TEXT-S&P sees negative bias for Asia-Pacific issuer credit outlook
Dec 6 - Asia-Pacific issuers in the building materials, metals and minerals, real estate development, capital goods, and chemicals sectors are likely to face further stress in 2013, Standard & Poor's Ratings Services said in a report published today titled, "Asia-Pacific Credit Outlook 2013: Corporate Ratings' Negative Bias To Persist Despite Likely Economic Upturn". Issuers in these sectors are, to some extent, coping with cyclical lows. "We found that our rated pool of Asia corporate, financial institution, and insurance entities showed negative ratings biases at Nov. 30, 2012," Standard & Poor's credit analyst Terry Chan said. "We expect this overall negative bias to continue into 2013 despite higher regional economic growth. We forecast that Asia-Pacific's real GDP growth will likely improve slightly to 5.0% in 2013, from an estimated 4.7% in 2012." The credit quality of rated Asia-Pacific corporate issuers has deteriorated slightly since the onset of the global financial crisis in 2008. Overall, the pool of corporate ratings has averaged a drop of one notch at Nov. 30, 2012, compared with the ratings levels at December 2008. For the region's rated financial institutions and insurers, the decline has been less noticeable. The report is available to RatingsDirect subscribers on the Global Credit Portal at www.globalcreditportal.com and RatingsDirect subscribers at www.ratingsdirect.com. Ratings information can also be found on Standard & Poor's public Web site at www.standardandpoors.com; under Ratings in the left navigation bar, select Find a Rating.