Moody’s Decline in Asian high-yield issuance
Moody’s says that Asian high-yield issuance - driven mainly by refinancing - continued to slow in the second quarter of 2018 from the prior quarter against the backdrop of tightening credit conditions, rising interest rates, and strengthening of the US dollar.
As a result, bond issuance in the first half 2018 totaled $15 billion, 30 per cent lower compared to $21.6 billion in the first half of 2017.
A total of 26 bond deals closed in the second quarter of this year with China and Indonesia-based property companies accounted for all deals except one, which was from Cambodian gaming operator NagaCorp Ltd (B1 stable).
“Around 76 per cent of issuance was rated at B1 or below, up from last quarter's 62 per cent, and primarily came from existing issuers, as credit conditions become more challenging for high-yield issuers” , says Annalisa Di Chiara, a Moody's Vice President and Senior Credit Officer.
