"The stable rating trend for 2H 2017 will be supported by broadly-based global growth, stronger export demand, and the recovery of commodity prices," says Clara Lau, a Moody's Group Credit Officer.
Moody's report points out that the share of ratings with negative implications for non-financial corporates in Asia (excluding Japan, Australia and New Zealand) slid to 19% at end-June 2017 from 29% at end-March 2017.
As a result, the share of ratings with stable outlooks rose to 74% at end-2Q 2017, the highest since the 75% seen at end-1Q 2015.
In Moody's Japanese portfolio for non-financial corporates, the share of ratings with negative implications dropped to 24% at end-2Q from 29% the previous quarter.
And, in Moody's Australian portfolio for non-financial corporates, the share of ratings with negative implications stayed at 12%, which was notably lower than the peak of 23% at end-2Q 2016.
Moody's report also explains that the pressure on companies in the metals & mining industry is easing, as the industry bottomed out. In Moody's Asian (excluding Japan, Australia and New Zealand) portfolio, the share of ratings with negative implications for metals & mining issuers dropped to around 27% at end-June 2017 from 60% at end-March 2017.
By contrast, companies in the retail segment are under pressure, with more than 30% of retailers carrying ratings with negative implications.
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For the property sector, 23% of developers' ratings show negative implications, because national sales are slowing and regulatory measures tightening.
During 2Q 2017, the share of negative rating actions (20) excluding 28 sovereign-driven actions slightly outpaced the 15 positive rating actions for Moody's non-financial corporates in Asia Pacific.
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