Corporate defaults likely to rise in Asia-Pacific: S&P
Global rating agency Standard & Poor's warned that corporate defaults are likely to rise in the Asia-Pacific region over next year due to contraction in economic output.
By PTI |
NEW DELHI: Global rating agency Standard & Poor's on Monday warned that corporate defaults are likely to rise in the Asia-Pacific region over the next year due to contraction in economic output.
"The region (Asia-Pacific) has not escaped the turmoil in the global economy and the international financial markets," the rating agency said in a research report.
It further said, "Steep declines in exports, especially in East Asia, have led to significant contractions in economic output...In the next year or so, corporate defaults will likely rise as a result."
S&P further said that the worst of the economic dislocation in Asia-Pacific appears to be over, if recent indicators are to be believed.
However, fiscal deterioration resulting from stimulus and banking-sector support measures will continue to put pressure on a number of sovereign ratings in the medium term.
"Recent outlook revisions for India and Taiwan, to negative from stable, reflect the fiscal deterioration associated with providing support for their respective economies," it said.
"The region (Asia-Pacific) has not escaped the turmoil in the global economy and the international financial markets," the rating agency said in a research report.
It further said, "Steep declines in exports, especially in East Asia, have led to significant contractions in economic output...In the next year or so, corporate defaults will likely rise as a result."
S&P further said that the worst of the economic dislocation in Asia-Pacific appears to be over, if recent indicators are to be believed.
However, fiscal deterioration resulting from stimulus and banking-sector support measures will continue to put pressure on a number of sovereign ratings in the medium term.
"Recent outlook revisions for India and Taiwan, to negative from stable, reflect the fiscal deterioration associated with providing support for their respective economies," it said.
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