Bangkok--6 Sep--Standard & Poor's
Asia-Pacific sovereigns will face tougher global conditions ahead, according to a Standard & Poor's Ratings Services' report published today, titled "Asia-Pacific Sovereign Report Card." This report includes summaries that provide insights into key factors that may support or threaten Asia-Pacific sovereign credit ratings this year.
"Current global conditions, although still supportive, are becoming less accommodative to economies in the region. The rating outlook on Asia-Pacific sovereigns remains upbeat, with a ratio of positive outlooks to negative of three to one. Further upgrade momentum, however, could slow when compared to the past 30 months," Standard & Poor's credit analyst Ping Chew said. "The security situation in the Middle East, and its potential to create volatility in oil prices, remains an ongoing concern, and the focus will be on whether the various economies in the region can maintain their resilience against an extended period of high oil prices and interest rates."
Nevertheless, strong credit fundamentals generally exhibited by sovereigns should provide a cushion against the cyclical slowdown and most shocks. For those sovereigns that are export-oriented, a slowdown in the U.S. economy is posing a genuine concern, although this is somewhat mitigated by the benefits of strong intra-Asia trade thanks to a booming China.
Since our last report in March 2006, Standard & Poor's upgraded the foreign currency rating on China, Hong Kong, and Indonesia. With the addition of the Republic of Fiji Islands, Standard & Poor's now rates 20 countries in Asia-Pacific, and 111 globally.
The report is available to subscribers of RatingsDirect, Standard & Poor's Web-based credit research and analysis system, at www.ratingsdirect.com . If you are not a RatingsDirect subscriber, you may purchase a copy of the report by calling (1) 212-438-9823 or sending an e-mail to [email protected] . Ratings information can also be found on Standard & Poor's public Web site at www.standardandpoors.com ; under Credit Ratings in the left navigation bar, select Find a Rating, then Credit Ratings Search. Members of the media may request a copy of this report by contacting the media representative provided.
Media Contact:
David Wargin, New York (1) 212-438-1579
[email protected]
Analyst Contacts:
Ping Chew, Singapore (65) 6239-6345
Sani Hamid, Singapore (65) 6239-6346
Takahira Ogawa, Singapore (65) 6239-6342
KimEng Tan, Singapore (65) 6239-6350
Agost Benard, Singapore (65) 6239-6347
Kyran Curry, Melbourne (61) 3-9631-2082