Nov. 8, 2011
-- The Q3 2011 rating exercise assesses the creditworthiness of 4,570 listed companies across Greater China. The impact of recent market stress and deteriorating economic sentiment was reflected with a total of 99 downgrades. While most sectors have demonstrated a slight increase in credit risk, a pronounced increase in credit risk has been observed in the electronic equipment, consumer electronics and computing industries, with 29 out of 99 downgrades occurring within these sectors. This reflects the difficult operating environment facing export focused enterprises as the ongoing global economic uncertainty has cut into sales of consumer electronics and personal computers. The downgrades have been spread across mainland China and Taiwan.
A number of downgrades also occurred within the food product, the farming and the fishing sectors. These sectors have been impacted by a number of factors, including increased scrutiny on corporate governance and efforts by local governments to curb food price inflation.
Following an extensive rating review in Q2 2011, the ratings of real estate developers within Greater China have remained resilient over the last quarter with five downgrades across the sector. CTRISKS will remain vigilant as further tightening of monetary policy and regional lending practices could dampen companies’ creditworthiness.
The results for all 4,570 rated entities in Q3 2011 are now available to CTRISKS’s subscribers.