Credit Markets Update Asia-Pacific Q2 2021 - S&P Global
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Credit Markets Update Asia-Pacific Q2 2021
March 30, 2021
Xu Han Vince Conti Lyndon Fernandes
Associate Director, Credit Market Research Associate Director, Credit Markets Research Analyst, Research
xu.han@spglobal.com vincent.conti@spglobal.com lyndon.fernandes@spglobal.com
Sudeep Kesh Nivritti Mishra
Head of Credit Markets Research Lead Analyst, Research
sudeep.kesh@spglobal.com nivritti.mishra@spglobal.comFinancing Conditions Highlights
APAC Financing Costs | Uneven Market Sentiment Across Ratings
Spectrum
U.S. and APAC OAS (for U.S. dollar-denominated bonds, in bps)
– Spreads largely steady. Despite APAC high
APAC 2010-19 High (Sept. 30, 2011) COVID-19 Worst yield spreads widening in the fourth quarter
(on the back of worries about the second
Beg. 2021 Oct. 30, 2020 wave of infections in the U.S. and Europe),
cautious optimism continues to compress
Feb. 26, 2021
spreads and provide headroom for issuers
1,400 needing to come to market.
– Nonetheless, risks remain for funding
1,200
Spreads (bps)
costs. High yield spreads are showing some
1,000 tentative signs of stress. For cross-border
funding, we are watching the potential
800 impacts of the reflation trade on not only
benchmark rates but also on investor
600 demand. Beyond that, concerns about the
string of defaults in China could potentially
400 spill over and put upward pressure on high
yield funding costs more broadly as well.
200
0
US IG APAC IG US HY APAC HY
Market
Note: Data as of Feb. 26, 2021. Sources: S&P Global Ratings and Bloomberg-Barclays Indices. Spreads from Bloomberg-Barclays are
secondary market pricing.
3U.S. Credit Composite Spreads Trends
U.S. Spreads By Rating Category
AAA AA A BBB BB B CCC
2,000
1,800
1,600
OAS (bps)
1,400
1,200
1,000
800
600
400
200
0
Data as of Feb. 26, 2021. Note: Option-adjusted spreads (OAS) computed on a pool of over 20,000 U.S.-domiciled bonds with par values of over $100 million that are rated by S&P Global Ratings. Sources: S&P Global Ratings
and Thomson Reuters.
4Equity Pricing
S&P 500 And VIX Index Weekly Movement From The Start Of 2020 Through Feb. 28, 2021
VIXCLS (left) S&P500 (right) S&P Asia 50 (right)
70 9000
8000
60
7000
50
6000
40 5000
30 4000
3000
20
2000
10
1000
0 0
Data as of Feb. 28, 2021. Weekly data as of Feb. 26, 2021. S&P Asia 50 index data is not available for May 1, 2020, Jan. 1, 2021 and Jan. 12, 2021. Sources: S&P Ratings Research, FRED, and S&P Dow Jones Indices.
5APAC Markets | Corporate Issuance
Asia-Pacific Cumulative Corporate (Financial And Nonfinancial) New Bond Issuance – Strong out of the gate. 2021 started
2017 2018 2019 2020 2021 YTD out with a bang in terms of Asia
Pacific corporate bond issuance
2,500
(including both financial and
(Bil. US$)
2,000 Through Feb 28, APAC
nonfinancial), even better than last
cumulative bond
1,500 issuance totals $282 year’s very strong start. Two-thirds of
billion.
1,000 that issuance volume happened in
500 January, however, with activity easing
subsequently owing to investor
0
skittishness after a string of high-
profile defaults in China.
Data as of Feb. 28, 2021. Sources: S&P Ratings Research and Thomson Reuters. – As with most years, much of the year’s
issuance volume also came from
Asia-Pacific Corporate (Financial And Nonfinancial) Bond Issuance China, particularly from financial
institutions and real estate
2017 2018 2019 2020 2021 YTD companies.
300 – Chinese property issuance is
200 frontloaded. Chinese real estate firms
(Bil. US$)
were particularly active in January,
100 both onshore and offshore, as they
tried to front-run the policy-driven
0 tightening of financial conditions
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec specifically for the sector. By February,
Month issuance was down to just a quarter of
Data as of Feb. 28, 2021. Sources: S&P Global Ratings and Thomson Reuters. the volume in January.
6APAC Corporate Issuance | By Market
Asia-Pacific New Issuance By Market – Offshore issuance was mostly from financials.
Most domestic issuance was from China. For
2017 2018 2019 2020 2021 YTD offshore, financials from Greater China, Japan,
and Australia accounted for most of the volume,
1,800 as well as Japanese non-financials, a quarter of
1614 which were from healthcare. Chinese real estate
1,600 also contributed a large chunk in January.
1,400 1323 – EM corporates found good windows. NFC
issuance has been largely at pace with--and even
(Bil. US$)
1,200
978 slightly ahead of--last year. Besides Japanese
1,000 883 firms and Chinese real estate, South and
Southeast Asia (especially India and Indonesia)
800
have been more active than usual, particularly
600 compared to 2020. This has held for both
403 385 388 435 investment- and speculative-grade, and has so
400 far persisted even as Chinese property issuance
184
200 98 eased.
0 – Demand for EM bonds ebbs and flows. However,
we have seen some instances in the region of
Domestic Foreign
planned deals being postponed, especially from
Market emerging markets or high yield issuers,
highlighting the continued fragility of investor
Data as of Feb. 28, 2021. Sources: S&P Global Ratings and Thomson Reuters. confidence.
7Ratings Trends And Outlooks Summary
APAC Upgrade And Downgrade Potential Compared With Historical
Averages | By Sector
– While compared with the sector historical averages, media and entertainment (including lodging companies) and automotive sectors show
the most downside risks; upgrade potential is led by capital goods.
Top 7 Sectors By Current Downgrade Potential: Asia-Pacific Top 7 Sectors By Current Upgrade Potential: Asia-Pacific
100 25
90
80 20
Current negative bias (%)
Current positive bias (%)
70
60 Media 15
50 Auto
Retail
40 ForestProd 10 CapGoods
ConProd ConProd
30 Infra Trans
Ins
20 5 Home/RE Fin
10 Util Metals
0 0
0 20 40 60 80 100 0 10 20 30 40 50
Historical average negative bias (%) Historical average positive bias (%)
Data as of Feb. 28, 2021. Based on Local Currency Ratings. Auto--Automotive. CapGoods--Capital Goods. ConProd--Consumer Products. Fin--Financial (ex. Insurance). ForestProd--Forest Products & Building Materials.
Home/RE--Homebuilders/Real Estate Co. Infra--Infrastructure. Ins--Insurance. Media--Media and Entertainment. Metals--Metals, Mining & Steel. Retail--Retail/Restaurants. Trans--Transportation. Util--Utility. Source:
S&P Global Ratings.
9Downgrade Potential | Regional Negative Bias
APAC Downgrade Potential Differentiated Across Region
– Downgrade potential across
10-Year Average 5-Year Average February 28, 2021 subregions remains elevated
due to the pandemic and
30% ongoing global economic
recession.
25% 24% 24%
– Regional negative bias remains
21%
19% high as of the end of February,
20% 18% 18%
16% above both historical averages,
especially for developed and
15%
12% 11% emerging APAC.
10%
5%
0%
Developed APAC Tiger Economies Emerging APAC
Data as of Feb. 28, 2021 and excludes sovereign. Source: S&P Global Ratings. Tiger Economies includes Singapore, South Korea, Taiwan, and Hong Kong. Developed APAC includes Australia, New Zealand, and Japan.
10Regional Bias Outlooks| By Country (Or SAR)
Current Bias By Country: Asia-Pacific Negative Bias Driven By Malaysia While Positive Bias Led By Hong Kong
Neg/Negative Stable Pos/Positive
Bias (%) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Australia (119)
Japan (95)
New Zealand (24)
Hong Kong (17)
Korea (32)
Singapore (22)
Taiwan (35)
China (117)
India (25)
Indonesia (13)
Malaysia (8)
Pakistan (1)
Philippines (4)
Thailand (9)
Vietnam (3)
All (524)
Source: S&P Global Ratings. Note: Total issuer count in parentheses. Downgrades tracked from Feb. 3, 2020 to Feb. 21, 2021. SAR--Special administrative region. Greater China includes mainland China, Taiwan, Macao, and
Hong Kong.
11APAC Ratings Distribution | By Sector
Asia-Pacific Corporates (Financial and Nonfinancial) Rating Distribution
Count of issuers 0 50 100 – Most rated issuers in APAC are investment-
Automotive grade.
Capital Goods AAA
– Transportation continues to have the highest
CP&ES share of speculative-grade, at six out of 10
AA
Consumer Products
rated companies, followed by metals and
Diversified A
Financials (ex. Insurance) mining (11 of 22), health care (two of four),
Forest and building materials (three of six).
BBB
Health Care – Homebuilders and real estate sector has the
High Technology BB highest count of speculative-grade issuers,
Homebuilders/Real Estate Co.
Insurance B
at 19 out of 58 rated companies.
Media & Entertainment
Metals, Mining & Steel CCC &
Oil & Gas Below
Retail/Restaurants
Telecommunications
Transportation
Utilities
Data as of Feb. 28, 2021. Source: S&P Global Ratings.
12APAC Ratings Distribution | Nonfinancial Ratings Distribution
– Roughly 33% of the APAC nonfinancial corporate speculative-grade universe remains vulnerable to credit deterioration (i.e., on negative outlook/CreditWatch
negative). This ratio is down from 39% in October and 44% in June 2020.
– Out of the 26 issuers in this category, only five are on CreditWatch negative, up from October’s three out of 32. The increase in issuers on CreditWatch negative
suggests more imminent risk of downgrades in the near term for some of the weakest credits, but the decrease in the overall number in this category continues
to point toward a gradual overall recovery in credit quality within the region.
Asia-Pacific Corporates Nonfinancial Ratings Distribution And Outlooks
Positive Outlook/CW Positive Stable Outlook Negative Outlook/CW Negative
50
45
40
35
Count of issuers
30
25 Riskiest issuers
20
15
10
5
0
AAA AA+ AA AA- A+ A A- BBB+ BBB BBB- BB+ BB BB- B+ B B- CCC+
Rating
Data as of Feb. 28, 2021. Source: S&P Global Ratings.
13APAC Outlook Distribution | By Sector
Asia-Pacific Corporates--Ratings Outlooks Across Rating Category
Count of Issuers 0 20 40 60 80 100 – Within nonfinancial corporates, the majority
of those poised for deterioration are in
Automotive
Capital Goods
utilities (14), homebuilders and real estate
CP&ES companies (13), and autos (9). Most of these
Consumer Products CW Neg are on negative outlook as opposed to
Diversified CreditWatch negative placements (72 of 80).
Forest Negative Outlook – Among the nine riskiest issuers ('B-' and
Health Care below on negative outlook or CreditWatch
High Technology Stable negative), two issuers, one in the transport
Homebuilders/Real Estate Co. industry and another in utilities, are on
Media & Entertainment Postive Outlook CreditWatch negative.
Metals, Mining & Steel
Oil & Gas
Retail/Restaurants
Telecommunications
Transportation
Utilities
Data as of Feb. 28, 2021. Source: S&P Global Ratings.
14APAC Potential Fallen Angels
– There were 13 potential fallen angels (through Feb. 28) in the region. The number of potential fallen angels has barely changed since the pandemic spread,
suggesting that the relatively weaker issuers in the 'BBB' space continue to face challenges despite the gradual overall recovery of the economy and credit.
– Real estate leads potential fallen angels with three issuers, followed by autos with two.
Potential Fallen Angels Approach “Taper Tantrum” Levels, Though
Homebuilders And Real Estate Lead Potential Fallen Angels
Slowing
PFA Issuer Debt (in Million $) PFA Issuer Debt (in Million $)
4 25000
30 80,000
Debt (Mil. US$)
Issuer Count
70,000 3 20000
25
60,000 15000
Debt (Mil. US$)
20 2
Issuer Count
50,000 10000
15 40,000 1 5000
10 30,000
20,000 0 0
5 10,000
0 0
2/1/2008
2/1/2009
2/1/2010
2/1/2011
2/1/2012
2/1/2013
2/1/2014
2/1/2015
2/1/2016
2/1/2017
2/1/2018
2/1/2019
2/1/2020
2/1/2021
Date
Sector
Data as of Feb. 28, 2021. Source: S&P Global Ratings. Data as of Feb. 28, 2021. CP&ES – Chemicals packaging and environmental services.
15APAC Fallen Angels | Investment-Grade Asia-Pacific Issuers Hold
Strong
Global Fallen Angels In 2020 & 2021YTD
Global ex. APAC (left axis) APAC (left-axis) APAC FA debt amount (right -axis)
– There were two fallen angels from Asia-
12 1.2
Pacific in 2020 and none in 2021 so far.
Outstanding Debt (Bil. US$)
US$1.1Bn
– The two fallen angels (2020) were a bank
10 1
from India and a mining company from
Count Of Fallen Angels
Zijin Mining Group Company Ltd. China.
Metals, Mining & Steel
8 0.8
China – Asia-Pacific fallen angels only account for a
Axis Bank Ltd.
Bank
fraction of the global fallen angels pool.
6 India 0.6
US$0.4Bn
4 0.4
2 0.2
0 0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Dec Jan Feb
2020 2021
Data as of Feb. 28, 2021. Source: S&P Global Ratings Research.
16Ratings Actions And Defaults Summary
Global Rating Actions | By Region
– With a lower ratings profile at the start of the current crisis, in 2020 downgrade tallies rapidly approached levels seen during the global financial crisis. Despite
relatively fewer ratings actions compared with the rest of the world, the downgrades in APAC almost doubled in 2020 relative to 2019 levels, however the pace
has slowed down at the start of 2021.
– Downgrades account for the majority of rating actions across geographies in 2020, with downgrade ratios exceeding other periods of stress.
Downgrade Tallies By Region Global Downgrade Ratio
North America Latin America Asia/Pacific EMEA
EMEA Asia/Pacific Latin America North America
1600
33%
1400 2010 63%
32%
1200 44%
969
Count of issuers
1000
Year
91%
800 2020 90%
93%
600 85%
112
400 33%
255 379 58%
200 16 2021 YTD 67%
143 94 48 48%
0 21 4
14
3
2010 2020 2021 YTD
0% 20% 40% 60% 80% 100%
Year
%
Data as of Feb. 28, 2021. Source: S&P Global Ratings. Data as of Feb. 28, 2021. Source: S&P Global Ratings.
18APAC | Rating Actions
Rating Actions By Month
Upgrade Positive Outlook/CreditWatch Revisions Downgrade Negative Outlook/CreditWatch Revisions
40
20
0
-20
-40
-60
-80
-100
-120
Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21
Note: Data includes Sovereign. Data from Feb. 3, 2020 to March 11, 2021. Greater China includes mainland China, Taiwan, Macao, and Hong Kong. Source: S&P Global Ratings.
19APAC | Rating Actions
Rating Actions By Sector
Upgrade Positive Outlook/CreditWatch Revisions Downgrade Negative Outlook/CreditWatch Revisions
20
10
0
-10
-20
-30
-40
-50
-60
Note: Data includes Sovereign. Data from Feb. 3, 2020 to March 11, 2021. Greater China includes mainland China, Taiwan, Macao, and Hong Kong. Source: S&P Global Ratings.
20APAC | COVID-19/Oil-Related Rating Actions
Virus- And Oil-Related Rating Actions By Country--First Half Of 2020
CreditWatch Negative OL Change Downgrade + CW Change Downgrade
20
Count of issuers
16
12
8
4
0
Japan
Japan
Japan
Japan
Singapore
Singapore
Singapore
South Korea
South Korea
South Korea
Thailand
Marshall Islands
Marshall Islands
Papua New Guinea
Marshall Islands
Malaysia
Malaysia
Malaysia
India
India
New Zealand
New Zealand
New Zealand
Fiji
New Zealand
Greater China
Greater China
Australia
Australia
Greater China
Greater China
Australia
Australia
Greater China
Indonesia
Indonesia
Indonesia
Feb. March April May June
2020
Note: Data includes Sovereign. Data from Feb. 3, 2020 to June 30, 2020. OL--Outlook. Greater China includes mainland China, Taiwan, Macao, and Hong Kong. Source: S&P Global Ratings.
21APAC | COVID-19/Oil-Related Rating Actions
Virus- And Oil-Related Rating Actions By Country--Second Half Of 2020 And Start Of 2021
CreditWatch Negative OL Change Downgrade + CW Change Downgrade
6
4
Count of issuers
2
0
Japan
Japan
Japan
Japan
Japan
Cook Islands
Singapore
Philippines
Singapore
Thailand
South Korea
South Korea
Thailand
Marshall Islands
Marshall Islands
India
India
India
India
New Zealand
Sri Lanka
Greater China
Greater China
Australia
Greater China
Greater China
Greater China
Greater China
Greater China
Australia
Indonesia
Indonesia
Indonesia
July August September October November December JanuaryFeb. 2021
Note: Data includes Sovereign. Data from July 1, 2020 to Feb. 22, 2021. OL--Outlook. Greater China includes mainland China, Taiwan, Macao, and Hong Kong. Source: S&P Global Ratings.
22APAC | COVID-19/Oil-Related Rating Actions
Sector Breakdown Of Corporate And Sovereign Debt Amount Affected By COVID-19 And Oil Prices
Banks (44) 630.6 Downgrade +
Sovereign (9) 217.2 CreditWatch
Automotive (21) 144.9
Energy (14) 39.3
Building materials (2) 38.5
Transportation (17) 28.6 Downgrade
Chemicals (9) 27.4
Real estate (24) 21.9
Capital goods (13) 21.2
Insurance (17) 17.9 CreditWatch Negative
Health care (2) 13.9
Utilities (10) 12.6
Media and entertainment (4) 11.2
NBFI (13) 9.4
Transportation infra (8) 8.5 OL Change
Hotels and gaming (6) 7.4
Telecom (1) 4.4
Business and consumer services (3) 3.4
Metals and mining (6) 3.2
Retailing (7) 1.5
Technology (7) 1.3
Consumer products (3) 0.2
0.0 100.0 200.0 300.0 400.0 500.0 600.0 700.0
Downgrades tracked from Feb. 3, 2020 to Feb. 22, 2021. NBFI--Non-bank financial institutions. OL--Outlook. Greater China includes mainland China, Taiwan, Macao, and Hong Kong. Source: S&P Global Ratings.
23APAC Ratings Summary | Sovereign In February
Country Rating Outlook 5 Year CDS Spread Median Rating Financials Median Rating Nonfinancials
Australia AAA Negative 15 A- BBB
Bangladesh BB- Stable N.M. B+
China A+ Stable 33 A BBB
Cook Islands B+ Stable N.M.
Fiji BB- Negative N.M.
Hong Kong AA+ Stable 30 A A
India BBB- Stable 71 BB+
Indonesia BBB Negative 80 B+
Japan A+ Stable 15 A+ A-
Korea AA Stable 25 A A-
Malaysia A- Negative 43 BBB+
Mongolia B Stable 247
New Zealand AA+ Stable 15 A+ BBB
Pakistan B- Stable 374 B-
Papua New Guinea B- Stable N.M.
Philippines BBB+ Stable 43 BBB
Singapore AAA Stable 21 A BBB
Sri Lanka CCC+ Stable 1576
Taiwan AA- Stable N.M. A- BBB+
Thailand BBB+ Stable 39 A- BBB+
Vietnam BB Stable 100 BB-
Note: Foreign currency ratings. N.M. indicates not meaningful. Red means speculative-grade rating and blue means investment-grade rating. Data as of Feb. 28, 2021, CDS Spread is as of Feb. 28, 2021. Sources: S&P Global
Ratings and S&P Capital IQ.
24Ratings Action | Weakest Links And Default Rates
APAC’s Weakest Links Reached Record Highs In 2020, Indicating Higher Likely Default Rates For The Region
Weakest Links Count (left scale) Weakest Link Share of Speculative-Grade Population (%) (right scale)
15 15%
Number of issuers
10 10%
5 5%
0 0%
Feb-18 Aug-18 Feb-19 Aug-19 Feb-20 Aug-20 Feb-21
Data as of Feb. 28, 2021. Source: S&P Global Ratings Research.
Default Rate Continues To Rise For APAC, Among The Highest Monthly Default Rate Seen Since 2017
APAC Developed APAC Tiger Economies Emerging APAC
Default rate (%)
10
5
0
Default rates as of Jan. 31, 2021. Tiger Economies includes Singapore, South Korea, Taiwan, and Hong Kong. Developed APAC
ludes
inc Australia, New Zealand, and Japan. Source: S&P Global Ratings.
25APAC Corporate | Defaults
APAC Corporate Defaults In 2020
Date Parent Company Country Sub sector To From Reason
14-Jan Qinghai Provincial Investment Group Co. Ltd. China Metals, mining, and steel D CCC- Missed interest payments
21-Jan Panda Green Energy Group Ltd. Bermuda Utilities SD CC Distressed exchange
Missed principal and interest
21-Feb Tunghsu Group Co. Ltd., China High technology SD CCC- payments
12-Mar Confidential Confidential Metals, mining, and steel SD CCC- Confidential
19-Mar Geo Energy Resources Ltd. Singapore Metals, mining, and steel SD B- Distressed exchange
27-Mar Yida China Holdings Ltd. Cayman Islands Homebuilders/Real Estate Co. SD CC Distressed exchange
FE Investments Ltd. (FE Investments Group
6-Apr Limited) New Zealand Finance companies D CCC Missed interest payments
Missed principal and interest
7-Apr Speedcast International Ltd. Australia Telecommunications D CCC payments
30-Apr Virgin Australia Holdings Ltd. Australia Transportation D CC Chapter 15
11-May Yihua Enterprise (Group) Co. Ltd. China Consumer products SD CCC Missed interest payments
23-Jun Boart Longyear Limited Australia Metals, Mining & Steel SD CC Missed interest payments
7-Jul Confidential Confidential Homebuilders/Real Estate Co. D CC Confidential
8-Jul PT Modernland Realty Tbk. Indonesia Homebuilders/Real Estate Co. SD CCC- Missed principal payments
Homebuilders/real estate
28-Oct PT Alam Sutera Realty Tbk. Indonesia companies D CC Distressed exchange
Please note: this default list is based on where the business is operated.
Data as of Dec. 31, 2020. Count of defaults as of Dec. 31, 2020. SD--Selective default. Source: S&P Global Ratings.
26APAC Corporate | Defaults
APAC Corporate Defaults So Far In 2021 ( YTD Two Defaulters)
Date Parent Company Country Sub sector To From Reason
3-Feb Confidential Confidential Health care SD CCC- Confidential
2-Mar Sunshine 100 China Holdings Ltd.* Cayman Islands Homebuilders/Real Estate Co. SD CCC- Distressed exchange
Please note: this default list is based on where the business is operated.
Count of defaults as of March 3, 2021. SD--Selective default. *Sunshine 100 China Holdings Ltd. is incorporated in the Cayman Islands but invests, develops, and manages real estate properties in the People’s Republic of
China. Source: S&P Global Ratings.
27Issuance Additional Details
APAC Issuance | Sovereign Debt
Bil. US$
2018 2019 2020 2021 YTD
140
18 120
16
100
14
12 80
Bil. US$
10
60
8
6 40
4
20
2
0 0
Country Or SAR
YTD data as of Feb. 28 for 2021, includes local/foreign currencies. Included where Fungible is ‘N’ or Blank. SAR--Special administrative region. Source: S&P Global Ratings.
29APAC Issuance | Sovereign Top 20 Deals In 2020 By Debt Amount
S&P
S&P Issue- Sovereign Issuance (Mil.
Issue Date Issuer Country Market Place Security Description Currency
Rating Rating (as of US$)
Feb. 28, 2021)
2.430% Senior Bonds due
13-Jan-21 Peoples Republic of China China China Public NR A+ '22 CNY $ 9,122
1.850% Global Notes due
5-Jan-21 Indonesia Republic Indonesia U.S. Public BBB BBB '31 USD $ 4,977
3.050% Global Notes due
5-Jan-21 Indonesia Republic Indonesia U.S. Public BBB BBB '51 USD $ 4,951
1.100% Global Notes due
5-Jan-21 Indonesia Republic Indonesia U.S. Public BBB BBB '33 EUR $ 4,876
Chongqing Municipal 3.230% Senior Bonds due
25-Jan-21 Government China China Public NR A+ '26 CNY $ 4,260
0.625% Medium-Term Nts
26-Jan-21 Hong Kong SAR Government Hong Kong U.S. Private AA+ AA+ due '26 USD $ 2,999
1.375% Medium-Term Nts
26-Jan-21 Hong Kong SAR Government Hong Kong U.S. Private AA+ AA+ due '31 USD $ 2,989
3.450% Senior Bonds due
2-Feb-21 Xinjiang Prodn & Constr Corps China China Public NR A+ '31 CNY $ 2,974
New New Zealand 0.500% Fxd/Straight Bd
4-Feb-21 New Zealand Zealand Priva AA+ AA+ due '26 NZD $ 2,472
3.450% Senior Bonds due
2-Feb-21 Xinjiang Prodn & Constr Corps China China Public NR A+ '31 CNY $ 2,417
YTD data as of Feb. 28, 2021, includes local / foreign currencies. Red means speculative-grade rating, blue means investment-grade rating, and grey means NR (not rated). Source: S&P Global Ratings.
30APAC Issuance | Sovereign Top 20 Deals In 2020 By Debt Amount
(Contd.)
S&P
Sovereign
S&P Issue- Issuance (Mil.
Issue Date Issuer Country Market Place Rating (as of Security Description Currency
Rating US$)
Feb. 28,
2021)
3.350% Global Notes due
5-Jan-21 Indonesia Republic Indonesia U.S. Public BBB BBB '71 USD $ 1,976
3.490% Fxd/Straight Bd
6-Jan-21 Peoples Govt Of Inner Mongolia China China Public NR A+ due '31 CNY $ 1,610
2.375% Medium-Term Nts
26-Jan-21 Hong Kong SAR Government Hong Kong U.S. Private AA+ AA+ due '51 USD $ 1,482
3.490% Fxd/Straight Bd
6-Jan-21 Peoples Govt Of Inner Mongolia China China Public NR A+ due '31 CNY $ 1,300
3.400% Senior Bonds due
18-Jan-21 Ningbo Municipal People's Gove China China Public NR A+ '28 CNY $ 955
3.390% Senior Bonds due
8-Jan-21 Gov of Xingjiang Uygur China China Public NR A+ '31 CNY $ 819
3.400% Senior Bonds due
18-Jan-21 Ningbo Municipal People's Gove China China Public NR A+ '28 CNY $ 770
3.390% Senior Bonds due
8-Jan-21 Gov of Xingjiang Uygur China China Public NR A+ '31 CNY $ 649
3.390% Senior Bonds due
13-Jan-21 People's Government of Jilin P China China Public NR A+ '28 CNY $ 588
3.390% Senior Bonds due
13-Jan-21 People's Government of Jilin P China China Public NR A+ '28 CNY $ 464
YTD data as of Feb. 28, 2021, includes local / foreign currencies. Red means speculative-grade rating, blue means investment-grade rating, and grey means NR (not rated). Source: S&P Global Ratings.
31APAC Issuance | Financial and Nonfinancial Top 20 Deals
Issue Maturity Market S&P Issue -
Date Date Issuer Country Sector Place Rating Security Description Currency Issuance (Mil. US$)
Finance 1.162% Gtd Sr Unsec Nts
24-Feb-21 3-Apr-26 NTT Finance Corp Japan Company U.S. Private A due '26 US $ 3,000
0.500% Global Notes due
20-Jan-21 27-Jan-26 AIIB China Banks U.S. Public NR '26 US $ 2,987
13-Jan-21 21-Jan-51 Nippon Life Insurance Co Japan Insurance U.S. Private A- Sub Notes due '51 US $ 1,600
Finance 0.373% Gtd Sr Unsec Nts
24-Feb-21 3-Mar-23 NTT Finance Corp Japan Company U.S. Private A due '23 US $ 1,500
Finance 1.591% Gtd Sr Unsec Nts
24-Feb-21 3-Apr-28 NTT Finance Corp Japan Company U.S. Private A due '28 US $ 1,500
Retail/Restaura 3.150% Global Notes due
4-Feb-21 9-Feb-51 Alibaba Group Holding Ltd China nts U.S. Public A+ '51 US $ 1,500
Retail/Restaura 2.125% Global Notes due
4-Feb-21 9-Feb-31 Alibaba Group Holding Ltd China nts U.S. Public A+ '31 US $ 1,498
Japan Bk for Intl 1.250% Gtd Global Nts due
13-Jan-21 21-Jan-31 Cooperation Japan Banks U.S. Public A+ '31 US $ 1,485
Mizuho Financial Group 1.234% Global Notes due
16-Feb-21 22-May-27 Inc Japan Banks U.S. Public A- '27 US $ 1,400
National Australia Bank
5-Jan-21 14-Jan-41 Ltd Australia Banks U.S. Private BBB+ 2.648% Sub Notes due '41 US $ 1,250
YTD data as of Feb. 28, 2021, excludes Sovereign. Red means speculative-grade rating , blue means investment-grade rating, and grey means NR (not rated). Table is for foreign currency only without perpetuals. Source: S&P
Global Ratings.
32APAC Issuance | Financial and Nonfinancial Top 20 Deals (Contd.)
Market S&P Issue -
Issue Date Maturity Date Issuer Country Sector Place Rating Security Description Currency Issuance (Mil. US$)
U.S. Medium-Term Nts due
5-Jan-21 12-Jan-27 Macquarie Group Ltd Australia Broker Private BBB+ '27 US $ 1,250
Euro Zero Cpn Zero Cvt
25-Feb-21 12-Mar-26 Afterpay Ltd Australia Banks Public NR Notes due '26 AU $ 1,181
Sumitomo Mitsui Finl U.S. 0.948% Global Notes
4-Jan-21 12-Jan-26 Grp Inc Japan Banks Public A- due '26 US $ 1,000
Finance U.S. 2.065% Gtd Sr Unsec
24-Feb-21 3-Apr-31 NTT Finance Corp Japan Company Private A Nts due '31 US $ 1,000
PT Pertamina Integrated Oil U.S. 1.400% Medium-Term
3-Feb-21 9-Feb-26 (Persero) Indonesia & Gas Private NR Nts due '26 US $ 1,000
U.S. 3.052% Sub Notes due
23-Feb-21 3-Mar-36 Macquarie Bank Ltd Australia Broker Private BBB '36 US $ 1,000
Finance U.S. 0.583% Gtd Sr Unsec
24-Feb-21 1-Mar-24 NTT Finance Corp Japan Company Private A Nts due '24 US $ 1,000
Alibaba Group Holding Retail/Resta U.S. 3.250% Global Notes
4-Feb-21 9-Feb-61 Ltd China urants Public A+ due '61 US $ 1,000
South High U.S. 1.500% Sr Unsecurd
13-Jan-21 19-Jan-26 SK Hynix Inc Korea Technology Private BBB- Nts due '26 US $ 999
Alibaba Group Holding Retail/Resta U.S. 2.700% Global Notes
4-Feb-21 9-Feb-41 Ltd China urants Public A+ due '41 US $ 993
YTD data as of Feb. 28, 2021, excludes Sovereign. Red means speculative-grade rating , blue means investment-grade rating, and grey means NR (not rated). Table is for foreign currency only without perpetuals. Source: S&P
Global Ratings.
33Related Research
– European Defaults Reach Nearly One-Third Of This Year's Global Tally, March 25, 2021
– Risky Credits: Net Upgrades And Higher Oil Prices Offer Some Relief To The Weakest-Rated Companies In The U.S. And
Canada, March 17, 2021
– No Tantrum Yet As Global Growth Gains Momentum, March 11, 2021
– The U.S. Distress Ratio Is Down Nearly 90% Since March, March 10, 2021
– Revenue Pressures Continue To Weigh On Consumer-Related Weakest Links, Feb. 22, 2021
– Global Financing Conditions: Bond Issuance Could Decline 3% To $8 Trillion In 2021, Jan. 28, 2021
– Credit Conditions Asia-Pacific: The Rebound Has Begun, Dec. 3, 2021
– Global Corporate Debt Market: State Of Play In 2020, June 25, 2020
34Copyright © 2021 by Standard & Poor’s Financial Services LLC. All rights reserved.
No content (including ratings, credit-related analyses and data, valuations, model, software or other application or output therefrom) or any part thereof (Content) may be modified, reverse engineered, reproduced or distributed in any form by any
means, or stored in a database or retrieval system, without the prior written permission of Standard & Poor's Financial Services LLC or its affiliates (collectively, S&P). The Content shall not be used for any unlawful or unauthorized purposes. S&P
and any third-party providers, as well as their directors, officers, shareholders, employees or agents (collectively S&P Parties) do not guarantee the accuracy, completeness, timeliness or availability of the Content. S&P Parties are not responsible
for any errors or omissions (negligent or otherwise), regardless of the cause, for the results obtained from the use of the Content, or for the security or maintenance of any data input by the user. The Content is provided on an "as is" basis. S&P
PARTIES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, FREEDOM FROM BUGS, SOFTWARE ERRORS
OR DEFECTS, THAT THE CONTENT'S FUNCTIONING WILL BE UNINTERRUPTED, OR THAT THE CONTENT WILL OPERATE WITH ANY SOFTWARE OR HARDWARE CONFIGURATION. In no event shall S&P Parties be liable to any party for any direct,
indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs or losses caused by negligence) in
connection with any use of the Content even if advised of the possibility of such damages.
Credit-related and other analyses, including ratings, and statements in the Content are statements of opinion as of the date they are expressed and not statements of fact. S&P's opinions, analyses, and rating acknowledgment decisions
(described below) are not recommendations to purchase, hold, or sell any securities or to make any investment decisions, and do not address the suitability of any security. S&P assumes no obligation to update the Content following publication in
any form or format. The Content should not be relied on and is not a substitute for the skill, judgment and experience of the user, its management, employees, advisors and/or clients when making investment and other business decisions. S&P
does not act as a fiduciary or an investment advisor except where registered as such. While S&P has obtained information from sources it believes to be reliable, S&P does not perform an audit and undertakes no duty of due diligence or
independent verification of any information it receives. Rating-related publications may be published for a variety of reasons that are not necessarily dependent on action by rating committees, including, but not limited to, the publication of a
periodic update on a credit rating and related analyses.
To the extent that regulatory authorities allow a rating agency to acknowledge in one jurisdiction a rating issued in another jurisdiction for certain regulatory purposes, S&P reserves the right to assign, withdraw, or suspend such acknowledgement
at any time and in its sole discretion. S&P Parties disclaim any duty whatsoever arising out of the assignment, withdrawal, or suspension of an acknowledgment as well as any liability for any damage alleged to have been suffered on account
thereof.
S&P keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of their respective activities. As a result, certain business units of S&P may have information that is not available to
other S&P business units. S&P has established policies and procedures to maintain the confidentiality of certain nonpublic information received in connection with each analytical process.
S&P may receive compensation for its ratings and certain analyses, normally from issuers or underwriters of securities or from obligors. S&P reserves the right to disseminate its opinions and analyses. S&P's public ratings and analyses are made
available on its Web sites, www.standardandpoors.com (free of charge), and www.spcapitaliq.com (subscription) and may be distributed through other means, including via S&P publications and third-party redistributors. Additional information
about our ratings fees is available at www.standardandpoors.com/usratingsfees.
Australia: S&P Global Ratings Australia Pty Ltd holds Australian financial services license number 337565 under the Corporations Act 2001. S&P Global Ratings' credit ratings and related research are not intended for and must not be distributed to
any person in Australia other than a wholesale client (as defined in Chapter 7 of the Corporations Act).
STANDARD & POOR'S, S&P and RATINGSDIRECT are registered trademarks of Standard & Poor's Financial Services LLC.
spglobal.com/ratings
35You can also read
