Moody's warns on China local government debt, financing vehicles

Moody's lowered its outlook for China's sovereign credit rating to stable from positive in April. Photo: Bloomberg

The ability of the mainland's local governments to repay their debt is being questioned, with analysts warning that the liabilities may be underestimated. Increased use of irregular financing activities such as trust loans, leases, wealth-management products and project financing pose a risk to local government finances, Moody's analyst Debra Roane said in a report.

Monday, 17 June, 2013, 5:52am

Shadow banking expansion to brake

Shadow lending is key for firms that struggle to get bank loans.

Shadow banking on the mainland is likely to grow at a slower pace, but the sector remains a key source of funds for smaller companies, rating agency Moody's Investors Service said.

14 May 2013 - 4:27am 1 comment

SE Asia ratings are wrong, say investors

Debt stood at 25 per cent of gross domestic product in Indonesia, rated junk by S&P, compared with 126 per cent in Italy, ranked three levels higher. Photo: AFP

The bond market is telling Moody's Investors Service and Standard & Poor's that they've got it wrong in rating sovereign debt in Southeast Asia.

12 Mar 2013 - 6:42am

Labour blasts George Osborne over Britain's loss of AAA credit rating

London's financial district. Moody's stripped Britain of its coveted AAA credit rating.

In a rebuff to London's hopes that sharp spending cuts would both gradually eliminate the deficit and give growth a boost, Moody's rating agency cut Britain's grade by one notch to Aa1.

24 Feb 2013 - 5:35am

Asia Pacific economies to ease downward rating pressure

China's bottoming out economy will lead to stabilising growth in property sales and infrastructure. Photo: Xinhua

Moody's Investors Service expects downward rating pressure to ease in 2013 as the Asian region, excluding Japan, significantly outperforms the weak global economy.

23 Jan 2013 - 3:55am

Moody's forecasts bleaker profit prospects for Chinese banks

Moody's sees bleaker prospects for Chinese banks

Rising competition and a squeeze on net interest margins will dampen profit prospects for mainland banks over the next 12 to 18 months, according to global credit rating agency Moody's.

23 Nov 2012 - 2:20am

Downgraded France says it needs more time

French President Francois Hollande waves as he arrives to deliver a speech at the 95th French Mayors congress, on November 20, 2012 in Paris. Photo: AFP

France’s government has shrugged off the latest downgrade of its credit rating, saying Tuesday that it just needs time for reforms to the sluggish economy to take root.

21 Nov 2012 - 10:03am

Moody's rates new ESM 'AAA' but outlook negative

Prime Minister and President of the Eurogroup Council Jean-Claude Juncker (left) speaks with IMF chief Christine Lagarde (right) before an Eurogroup Council meeting. Photo: AFP

Credit rater Moody’s assigned the European Stability Mechanism, Europe’s new emergency fund, a triple-A rating, but labeled it with a negative outlook.

Moody’s cited the ESM’s expected low leverage, the credit-worthiness of the eurozone countries behind the ESM, and the fund’s preferred creditor status in giving it a top Aaa grade.

9 Oct 2012 - 6:13am

Lai See

Why Nostradamus wasn't born in modern Hong Kong

9 Dec 2011 - 12:00am

Moody's lowers Chaoda rating

Moody's Investors Service yesterday downgraded the rating of Hong Kong-listed mainland farming firm Chaoda Modern Agriculture (Holdings) to Ba3 from Ba2.

The downgrade follows delays in the release of the firm's annual results announcement, which was due last Friday.

8 Oct 2011 - 12:00am

Lai See

Ratings agencies have uncanny knack for getting it right

What is it with the ratings agencies that without a hint of shame they belatedly show up weeks after an event and with Delphic-like assurance tell us what's wrong with a company's credit status?

20 Jul 2011 - 12:00am

Market Calls

Moody's issued a report last Monday flagging corporate governance concerns of 61 mainland firms. Longfor Properties (960) received seven flags, or seven areas of concern. The report contributed to a pulled share placement by Longfor of about US$500 million that was attempted on the same day of the Moody's report. Longfor's share price fell 10.5 per cent in the two days following.

18 Jul 2011 - 12:00am

Scrutiny of rating agency may raise its own red flags

The word most uttered over business lunches in Central this week must have been 'Moody's'. The rating agency's 'red flag' report on mainland companies stirred up as much controversy about its own reputation as that of the corporations it rated.

16 Jul 2011 - 12:00am

Moody's proposal sends Nine Dragons shares up

Nine Dragons Paper (Holding) said yesterday it had received a proposal from Moody's Investor Services after Standard & Poor's dropped the scrap paper recycler's rating, causing its shares to plunge to a two-year low on Tuesday.

16 Jun 2011 - 12:00am

Zendai Bund deal prompts Moody's review

Shanghai Zendai Property has requested its shares be suspended from trading after revealing it would pay a record 9.22 billion yuan (HK$10.5 billion) for a prime commercial site on the Bund, a purchase that prompted Moody's to put some of its debt under review.

3 Feb 2010 - 12:00am