Moody’s Asian Liquidity Stress Indicator weakens slightly
Moody’s Investors Service on Monday said that its Asian Liquidity Stress Indicator (Asian LSI) had weakened slightly to 29 per cent last month, when compared with the 28.8 per cent for April.
The Asian LSI measures the percentage of high-yield companies with Moody’s weakest speculative-grade liquidity score of SGL-4 as a proportion of high-yield corporate family ratings.
The indicator increases when speculative-grade liquidity deteriorates.
“However, the Asian LSI remains above the 12-month average of 27.1 per cent for the third consecutive month, indicating a weakening trend in liquidity for companies with speculative-grade ratings,” said Brian Grieser, a Moody’s vice president and senior credit officer.
