Most Asian nations to weather US slowdown: S&P

Most Asian governments can probably withstand a US economic slowdown without the risk of a cut to their credit ratings because the region still has "robust growth prospects", Standard & Poor's said.

The ratings company, in a report on Monday, said it doesn't see any potential credit impact from a US recession on 16 of the 22 economies that it monitors in the region. Still, a recession in the US this year means there is "limited scope" for credit rating upgrades, credit analyst Agost Benard wrote.

"The countries most susceptible to export declines tend to have a diverse economic base, robust foreign reserves cushion, and highly adaptable economies," Benard said.

"Countries identified as most exposed to a sharp fall in US import demand would, in all likelihood, be able to ride out such a scenario without any adverse impact on their rating."

China's appetite for raw materials and other goods purchased from its Asian neighbours has helped the region weather a slowdown in demand from the US, which is mired in the worst housing slump in 16 years. Domestic demand and intra-regional trade may offset slowing US orders, S&P said.

Still, economists say Asia's export-dependent economies will be among those hardest hit as the US slips into a recession.

Asia is almost twice as reliant on exports as the rest of the world, with 60 per cent of shipments abroad ultimately destined for the US, Europe and Japan.