Credit trend for APAC non-financial corporates stays stable

    Moody's Investors Service said in a new report that the overall rating trend for Asia Pacific non-financial corporates should remain broadly
stable in the second half of 2019, supported by accommodative monetary policy.
  However, downside risks are increasing because of slowing global economic growth, uncertainty from the US-China trade dispute, and increasing geopolitical risks arising from the escalation of US tensions with Iran.
  "The accommodative monetary policy of major central banks and substantial stimulus measures in China support the benign financial markets, and help somewhat offset the impact of ongoing trade uncertainties," said Clara Lau, a Moody's Group Credit Officer.
  The share of ratings with a stable outlook in Asia Pacific stayed high at 86% at the end of 2Q 2019, slightly up from 84% at the end of 1Q 2019.
  Ratings with negative implications stood at 10% at the end of Q2 2019, largely unchanged from the 11% recorded at the end of Q1 2019.
  The share of ratings with a stable outlook for the Asia, Japan and Australia/New Zealand portfolios all stayed high at 85%, 84% and 93%, respectively, at the end of 2Q 2019.
  In 2Q 2019, the rating trend for the Asia Pacific rated corporate portfolio was slightly negative, with 16 positive and 19 negative rating actions.