Bangkok--3 Oct--Moody's Moody's Investors Service says that negative rating actions in Asia Pacific (ex-Japan) continued to outnumber positive actions during 3Q2008 by 17 to 2 compared with 18 to none in 2Q2008. "Looking ahead, access to funding will remain challenging, especially for low investment grade and speculative grade firms as already tight market liquidity is further aggravated by the financial turmoil in the US," says Clara Lau, Chief Credit Officer / Asia Pacific (ex-Japan) Corporate Finance group. Lau was commenting on the release of the latest Moody's report -- which she authored -- on corporate credit trends in Asia Pacific (ex-Japan) during 3Q08. "Behind many of the negative rating actions in 3Q2008 were weakening financial profiles and liquidity, due to tougher operating conditions," says Lau. "Rising costs and a fall in consumer and industry demand — regionally and globally — undermined the operating performances and credit metrics of these issuers." By contrast in 2Q2008, negative actions were mainly due to a preponderance of debt-funded deals. "During 3Q2008, real estate and technology sectors accounted for most of the negative actions and, in the months ahead, technology, shipping and property firms are the most vulnerable to the global economic slowdown and continued credit crunch, while the positions of retailers are also weakening," says Lau. "Furthermore, the persistence of a negative rating trend since September 2007 has resulted an overall downward rating migration for Moody's portfolio of non-financial corporates in Asia Pacific (ex Japan)," adds Lau. Copies of the report -- titled 3Q08 Asia-Pacific (ex-Japan) Corporate Credit Trends -- can be found at www.moodys.com.