Moody’s liquidity ‘stress indicator’ weakens again
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Moody’s Investors Service says on Monday that its Asian Liquidity Stress Indicator (Asian LSI) weakened to 32.7 per cent in July from 30.9 per cent in June.
It has now remained above the 12-month average of 27.9 per cent for the fifth consecutive month.
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.
“The Asian LSI increased as the number of issuers reliant on short-term funding rose, marking the sixth consecutive month that the indicator has weakened,” said Brian Grieser, a Moody’s vice president and Senior Credit Officer.
