Bangkok--23 Dec--Fitch Ratings
Fitch Ratings has published the "Asia-Pacific Sovereign Outlook", summarising its views on sovereign credit trends in the region.
Emerging Asia's sovereign credit-worthiness is supported by strong or improving public and external finances, as well as relatively strong medium-term growth prospects for most countries. These factors supported the assignment of a Positive Outlook to Korea's 'A+' rating on 7 November 2011, and Indonesia's upgrade to 'BBB-' on 15 December 2011.
Emerging Asia's growth prospects remain relatively favourable, though the region is not immune from problems elsewhere in the world. Fitch has cut its forecast for Emerging Asia's 2012 growth to 6.8% for 2012, from 7.4% in June, reflecting both the deterioration in the outlook for the world economy and the lagged impact of policy tightening in some countries, including the region's two giants, China and India.
"High-income Asia" exhibits more mixed credit trends. Australia joined Singapore among the ranks of 'AAA' sovereigns on 28 November 2011, while long-standing concerns over external indebtedness saw New Zealand downgraded to 'AA'/Stable from 'AA+'/Negative on 29 September 2011. Hong Kong was affirmed 'AA+'/Stable, while Japan's 'AA' Foreign-Currency and 'AA-' Local-Currency IDRs remain on Negative Outlook on Fitch's concerns over medium-term government debt dynamics.
'Asia-Pacific Sovereign Outlook' is available on www.fitchratings.com or by clicking on the link above.