“We expect the recovery from this recession to be prolonged, although the easing of lockdown measures should support a gradual recovery in H2. The ability of businesses to recover will depend on the pace at which consumer demand rebounds, which in turn hinges on governments’ ability to restore confidence by reducing fear of contagion,” Moody’s Group Credit Officer and Senior Vice President Clara Lau said.
Moody’s said the outlook remains highly uncertain for all Asia-Pacific (APAC) economies, with pace of recovery uneven across all countries.
“The coronavirus-triggered global recession will continue to pressure Asia Pacific nonfinancial companies, with negative credit trends to persist through the rest of 2020,” Moody’s said.
The rating trend in June quarter of 2020 remained negative across Moody’s Asia-Pacific rated corporate portfolio, although the number of negative rating actions has decreased.
Moody’s took 86 negative actions in April-June, down from 120 in January-March. Of the 86 negative actions, 18 are sovereign-driven negative rating actions related to India’s sovereign downgrade.
Excluding sovereign-driven actions, metals and mining, energy and property accounted for the most among the negative actions, with each sector receiving nine. There were no positive rating actions in April-June.
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