![]() ![]() ![]() Fitch conducts a reasonable investigation of the factual information relied upon by it in accordance with its ratings methodology, and obtains reasonable verification of that information from independent sources, to the extent such sources are available for a given security or in a given jurisdiction. In issuing and maintaining its ratings and in making other reports (including forecast information), Fitch relies on factual information it receives from issuers and underwriters and from other sources Fitch believes to be credible. Reproduction or retransmission in whole or in part is prohibited except by permission. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.Ĭopyright © 2020 by Fitch Ratings, Inc., Fitch Ratings Ltd. ![]() FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DIRECTORS AND SHAREHOLDERS RELEVANT INTERESTS ARE AVAILABLE here. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE, AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE CODE OF CONDUCT SECTION OF THIS SITE. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEB SITE AT PUBLISHED RATINGS, CRITERIA, AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. Nonetheless credit spreads expanded by 10bp-20bp across ‘AAA’-‘AA’ domestic ratings in March, as investors demanded higher credit-risk premiums in the wake of the coronavirus pandemic.Īdditional information is available on ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. For example, the median yield of two-year medium-term notes with a domestic rating at or above ‘AA’ declined by 40bp-50bp during the first quarter. Meanwhile, corporate’s onshore bond funding costs fell moderately due to lower risk-free rates, in contrast to yield hikes on Chinese issuers’ US-dollar bonds. Property companies contributed 27% of POEs’ net issuance in 1Q20. Nonetheless, nearly 80% of incremental issuance by POEs was from large, leading companies rated ‘AAA’ by domestic rating agencies. Privately owned enterprises (POE) have benefitted less from the broad liquidity easing, even though their balance of outstanding bonds has increased for three straight months, ending the contraction throughout 2H19. Local government financing vehicles (LGFV) represented 38% of SOEs’ net issuance. State-owned enterprises (SOE) contributed the vast majority of net onshore corporate bond issuance in 1Q20, with a 91% share by deal size, up from 89% a year earlier. Corporates’ onshore bond issuance reached CNY3.1 trillion in the first quarter, up by 33% yoy, and monthly issuance in March and April hit record highs. However, offshore bond issuance remains muted.Ĭhina’s corporate credit growth hit almost 10% yoy as of end-1Q20 - the highest level since 2017 - amid regulators’ efforts to support domestic corporates’ liquidity and boost GDP growth in light of the coronavirus pandemic. ![]() (The following statement was released by the rating agency)įitch Ratings-Shanghai-May 07: Improved onshore market liquidity, fuelled by an increase in corporate bonds and bank loans, should alleviate refinancing pressure on Chinese corporates to varying degrees, says Fitch Ratings. ![]()
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