Moody's: 2017 outlook for APAC sovereigns stable

The US-based ratings agency, Moody’s Investors Service, published their latest report on the outlook for Asia Pacific sovereigns on Tuesday.

Key Quotes:

“Rising income levels and strengthening institutions will offer support to several sovereign credit profiles in the region.”

“However, although GDP growth in the region remains relatively robust, lackluster growth in global trade and capital outflows may weigh on the credit profiles of those more dependent on external demand or financing.”

“Given this context, credit outcomes in 2017 will be determined by the effectiveness of ongoing reform efforts and the evolution of political risks.”

“The report explains that most Moody's-rated sovereigns in Asia Pacific carry ratings with stable outlooks, but negatives outlooks outnumber positive ones. Specifically, in terms of the 24 sovereigns that Moody's rates in Asia Pacific, there were 18 stable outlooks as of 10 January 2017, four negative and two positive.”