HONG KONG, May 19 (IFR) - Asia credit markets were little
changed on Friday with Chinese property developers softer on
news of rating downgrades and concerns over policy tightening by
"The market stabilised today after sell-offs yesterday, but
no big inflows were seen," said a Hong Kong-based credit trader,
noting that uncertainties over political turbulence in the US
The iTraxx Asia investment-grade index was flat at
91bp/93bp. New issues were softer. Sinochem's new 2022s widened
3bp, while BOC Aviation's new 2022s were bid at 5pb wider than
the reoffer price.
Chinese developers also traded lower amid worries that
mainland regulators would restrict their offshore debt financing
in a bid to curb rises in property prices.
Logan Property's newly issued 5.75NC3 notes was below water
at 97.424/97.854. "Logan's pricing was set very tight, plus,
investors were concerned about its aggressive land purchases,"
said a credit analyst.
Yuexiu Property's 2023s widened 50bp after S&P downgraded
its long-term corporate credit rating to BB+ from BBB-.
KWG's 2017s also widened about 50bp to 4.48% after S&P
lowered its credit rating to B+ from BB-.
The Hong Kong-based trader noted that Baidu's US dollar
2026s had widened 6bp-7bp since Moody's put its A3 ratings on
review for downgrade on Monday on concerns over "the
fast-growing state of its finance business, which has higher
financial and execution risks when compared with its core
(Reporting by Ina Zhou; editing by Dharsan Singh)