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Moody's: Asian Liquidity Stress Indicator decreases to 26.4% in November from 27.6% in October

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Capital Market
Last Updated : Dec 11 2017 | 2:31 PM IST
Moody's Investors Service says that its Asian Liquidity Stress Indicator (Asian LSI) decreased in November 2017 to 26.4% from 27.6% in October.

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 decreases when speculative-grade liquidity improves.

"The Asian LSI improved in November to 26.4%, largely due to the addition of new issuers, but remains weaker than the long-term average of 23.1%," says Brian Grieser, a Moody's Vice President and Senior Credit Officer.

The number of rated high-yield companies with Moody's weakest speculative-grade liquidity score (SGL-4) decreased to 39 from 40, while the total number of rated high-yield companies increased to 148 from 145.

"The momentum in high-yield issuance continued in November, with rated issuance totaling $1.9 billion in the month, raising year-to-date issuance to a record $33.9 billion," added Grieser.

The liquidity stress sub-indicator for North Asian high-yield companies decreased slighlty to 27.8% in November from 28.0% in October.

The Chinese sub-indicator remained broadly stable at 28.7% from 28.9% and the high-yield Chinese property sub-indicator increased to 19.1% from 17.4%.

Also Read

The Chinese high-yield industrials sub-indicator decreased to 40.0% from 43.2%, driven by new rating assignments during November.

The liquidity stress sub-indicator for South and Southeast Asian high-yield companies decreased to 23.5% in November from 26.9% in October. The Indonesian sub-indicator decreased to 23.1% from 24.0%.

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First Published: Dec 11 2017 | 2:13 PM IST

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