Bangkok--10 Nov--Moody's
Moody's Investors Service has revised its outlook for the technology and semiconductor sectors in Asia (ex-Japan) to stable from negative, given its view that fundamental credit conditions for these sectors will neither erode nor improve over the next 12-18 months.
"Demand for personal computers, communication devices, and consumer electronics in Asia has been more resilient than expected," says Ken Chan, a Moody's Vice President, on the release of a Moody's update on the sectors. "The region has quickly recovered from the deep trough of 4Q08 and 1Q09, with technology and semiconductor companies reporting improved profitability."
"More specifically, the stabilizing trend should continue over the next 12 months because of improved GDP growth in Asia; the conversion of cathode-ray-tube to liquid-crystal-displays (LCD); better-than-expected PC shipments, and improved handset sales," says Chan.
"At the same time, the sharp rise in benchmark DRAM prices will level off as Taiwanese firms raise utilization rates, but not to the extent that there will be a sharp fall in average selling prices," says Chan.
The short report is entitled, Asia (ex-Japan) Technology Sectors Stabilize. It can be found at www.moodys.com