[ET Net News Agency, 19 July 2018] The negative ratings trend of Asia-Pacific's banks
has improved slightly despite downside risks, according to S&P Global Ratings in its
quarterly report published today, titled "Asia-Pacific Financial Institutions Monitor 3Q
2018 Q3 2018."
The net negative outlook bias across the portfolio of over 300 rated financial
institutions across 20 Asia-Pacific countries is about -6% as of 31 May 2018.
Although negative rating outlooks still exceed positive rating outlooks, the negative
bias has improved from -10% as of the end of the first quarter.
While macroeconomic and financing conditions continue to be favorable overall in
Asia-Pacific, risks emanating from the U.S. are increasing.
"The more prominent key risks that threaten Asia-Pacific financial institutions' credit
quality include high private-sector indebtedness, elevated property prices, and the
potential for rising U.S interest rates," said S&P Global Ratings credit analyst Gavin
Gunning. (KL)