RPT-Fitch: Slightly More Urgent Risk from China Slowdown
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Sept 18 (Reuters) - (The following statement was released by the rating agency)
Fitch Ratings has given a slightly greater urgency to the risk of a material slowdown in China's economic growth in the updated Asia-Pacific edition of its Risk Radar, though that is not the agency's base case.
However, if growth in China does slow significantly, Fitch expects that this would have the widest impact on the agency's portfolio of rated entities. This is because the region's exporters, particularly raw-material exporters, are dependent on demand from China.
The update also takes into account the risk of a decline in real-estate prices in the Asia-Pacific following a rollback of easy-money policies in developed economies. Although Fitch stress tests show rating resilience to significant price falls, the risk of potential rating changes increases because the number of securities covered has grown.
Aside from these changes, Fitch's view of the macroeconomic risk factors affecting the Asia-Pacific region is broadly unchanged from the previous publication of the Risk Radar in April.
The September 2013 Asia-Pacific edition complements the global Risk Radar publication released in the same month.
Link to Fitch Ratings' Report: Risk Radar APAC - Q313
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