China moves to check inflated ratings, allows issuers to opt out

China moves to check inflated ratings, allows issuers to opt out

(ATF) China has proposed scrapping corporate obligation to obtain a credit rating, in a sign the world’s second biggest bond market is maturing and investor scrutiny has improved. It will also help end the practice of rating shopping – where issuers pick to hire an agency that gives them the …

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How the coronavirus is crushing credit ratings

How the coronavirus is crushing credit ratings

LONDON: The crippling effects of the coronavirus crisis have crushed government and corporate finances and sent debt soaring. As the charts below show, it is also crunching their credit ratings and causing a spike in defaults. BROKEN RECORDS S&P Global has already made 1,190 downgrades so far this year. That …

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Fitch revises Japan outlook to negative

Fitch revises Japan outlook to negative

Fitch Ratings has revised Japan’s ratings outlook – to negative from stable – after saying its economic contraction was a result of the coronavirus pandemic. “The negative outlook reflects that the higher debt ratio and downside risks to the macroeconomic outlook will nevertheless exacerbate the challenge of placing the debt …

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Asia high-yield downgrades hit a peak in Q2: Moody's

Asia high-yield downgrades hit a peak in Q2: Moody's

(ATF) Asian high-yield corporate ratings saw the highest number of downgrades on record in the last quarter as the coronavirus pandemic ravaged company balance sheets and elevated refinance risks, according to Moody’s Investors Service. The rating agency said there were 22 downgrades in the second quarter, the highest quarterly level …

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Fitch revises India's outlook to negative

Fitch revises India's outlook to negative

(ATF) The outlook on India’s BBB- sovereign rating was revised to negative from stable, by Fitch, bringing it in line with Moody’s, which also has a negative outlook on it with a Baa3 rating. Both BBB- and Baa3 are the lowest level of investment grade rating. Rivals S&P Global has …

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India sees an all-time high count of 'fallen angels'

India sees an all-time high count of 'fallen angels'

(ATF) The number of potential "fallen angels" in Asia has surged this year after India’s sovereign downgrade pushed government-related companies to the cusp of non-investment-grade category, Moody’s Investors Service said in a report. This month, the number of potential 'fallen angels' – companies that have sunk to the lowest investment …

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Moody's gives Asia-Pacific banks a 'negative' outlook

Moody's gives Asia-Pacific banks a 'negative outlook'

(ATF) Moody’s Investors Service has changed to negative its outlook on a dozen Asia Pacific banking systems, as the relentless spread of the coronavirus hammers economies across the region. Banking systems in Australia, China, India, Indonesia, South Korea, Malaysia, New Zealand, Philippines, Singapore, Taiwan, Thailand and Vietnam were revised downwards. …

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