Asia-Pacific Credit Markets Update - 3Q 2020 - S&P Global
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Asia-Pacific Credit Markets
Update – 3Q 2020
Xu Han, Associate Director – Credit Markets Research
xu.han@spglobal.com
Nivritti Mishra, Lead Analyst –Research
nivritti.mishra@spglobal.com
Lyndon Fernandes, Analyst – Research
lyndon.fernandes@spglobal.com
Vince Conti, Associate Director – Credit Markets Research
vince.conti@spglobal.com
Sudeep Kesh, Head of Credit Markets Research
sudeep.kesh@spglobal.com
Evan Gunter, Director - Ratings Performance Analytics
evan.gunter@spglobal.com
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Highlights
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Used with accent colors: by using Insert g Header & Footer g Enter / change text g Click Apply All.APAC | Debt Maturing Through 2025 Is Mostly
Investment Grade
– Investment-grade maturities peak at $240.9 billion in 2022, and much of this debt is from financial
services companies.
– Issuers of speculative-grade debt have longer to refinance because these maturities do not peak until
2024, when $22.2 billion matures.
APAC Corporate (Financial and NonFinancial) Debt APAC Corporate (IG and SG) Debt Maturities By Country
Maturities By Country (2020.2H-2025) (2020.2H – 2025)
Financials Nonfinancials IG SG
Japan Japan
Australia Australia
Great er C hina Greater China
Korea, Rep ublic of Korea, Republic of
Singapore Singapore
India India
New Ze alan d New Zealand
Indon esia Indonesia
Malaysia Malaysia
T hailand Thailand
(Bil. $) 0 50 100 150 200 250 300 350 (Bil. $) 0 50 100 150 200 250 300 350
Note: Data as of July 1, 2020. Includes bonds, loans, and revolving credit facilities that are rated by S&P Global Ratings. By country excludes Mongolia , Philippines and
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Marshall Islands. Greater China includes mainland China, Hong Kong, Taiwan, and Macau. Source: S&P Global Ratings Research.
3
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Hide Uneven Market Sentiment • Spreads continue to compress. The
widespread support from major central
US and APAC Options-Adjusted Spreads (for USD- banks continues to combine with a
denominated bonds, in bps) gradual economic recovery in most
parts of the world to generate more
1400
calm in markets. As such, spreads have
1275
tightened further since June, with the
region’s investment-grade segment
1200
having largely normalized as much as
1,078
1057.53 the U.S. market has. Speculative-grade
spreads have also come in significantly,
1000
and are now just about half the levels
seen at the peak of the COVID-19 crisis,
781 though they remain slightly over 200bps
800
higher than at the start of 2020.
678
600 572
• Risk-aversion persists, especially for
448 462 speculative-grade issuers. Despite
366 significantly tightened spreads on the
400
319 secondary market, patterns in APAC
278
227
primary market activity continue to
176 169 signal relatively restricted access to
200 141 121 capital markets for many speculative-
grade firms. The overwhelming majority
of the issuance in this segment this year
0
US IG APAC IG US HY APAC HY has been from Chinese real estate
firms, with the sectoral and geographic
APAC 2010-19 High (Sep 30, 2011) Beg. 2020 COVID-19 Worst Sep 11, 2020 concentration suggesting that investors
are still generally more cautious.
Note: Data as of September 11, 2020. Source: S&P Global Ratings Research, Bloomberg-Barclays Indices.
ow the line Spreads from FRED are secondary market pricing.
4
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U.S. Spreads By Rating Category
(bps) AAA AA A BBB BB B CCC
2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
1/ 16
1/ 17
1/ 18
1/ 19
3/ 16
5/ 16
7/ 16
9/ 16
11 016
3/ 17
5/ 17
7/ 17
9/ 17
11 017
3/ 18
5/ 18
7/ 18
9/ 18
11 018
3/ 19
5/ 19
7/ 19
9/ 19
11 019
3/ 20
5/ 20
7/ 20
9/ 20
20
0
0
0
0
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
/2
/2
/2
/2
2
2
2
2
1/
1/
1/
1/
1/
1/
1/
1/
1/
1/
1/
1/
1/
1/
1/
1/
1/
1/
1/
1/
1/
1/
1/
1/
1/
/1
/1
/1
/1
1/
* Option-adjusted spreads computed on a pool of over 20,000 U.S.-domiciled bonds with par values of over $100M that
are rated by S&P Global Ratings. Data as of Aug. 31, 2020. Source: S&P Ratings Research; Thomson Reuters.
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• When the COVID-19 pandemic was blustering around March, markets saw markedly higher volatility, indicating much
weaker investor confidence. Subsequently, various central bank actions, such as asset purchase programs, increased
liquidity and helped investor confidence recover gradually as some economies start to recover, among which Asia was
the first but unevenly.
S&P 500, S&P Asia50 Index And VIX Movements In Last One Year
90 6000
80
5000
70
60 4000
50
3000
40
30 2000
20
1000
10
0 0
9
9
0
0
0
0
0
0
0
0
19
19
19
01
01
02
02
02
02
02
02
02
02
20
20
20
/2
/2
/2
/2
/2
/2
/2
/2
/2
/2
6/
6/
6/
26
26
26
26
26
26
26
26
26
26
/2
/2
/2
8/
9/
1/
2/
3/
4/
5/
6/
7/
8/
10
11
12
S&P500 (right) S&P Asia 50 (right) VIXCLS (left)
Weekly data as of Aug. 31, 2020. S&P Asia 50 index data is not available for Jan. 27, 2020. Source: S&P Ratings Research;
FRED; S&P Dow Jones Indices.
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Used with accent colors: by using Insert g Header & Footer g Enter / change text g Click Apply All.APAC Markets | Corporate Issuance
Asia-Pacific Cumulative Corporate (Financial and NonFinancial) New
Bond Issuance • 2020YTD Asia Pacific
($ Bil.) corporate bond issuance
2016 2017 2018 2019 2020 YTD
(including both financial
1800 and nonfinancial) is at its
1600 Through August, 2020 highest year-to-date
issuance exceeds $1.3
1400 trillion volume, owing to large
1200 and fast fiscal and
1000 monetary stimulus by
800 central banks.
600 • However, a bulk part of
400 this total was local bond
200 issuance by Chinese
0 firms, reflecting the
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec extraordinary support by
the government, not only
($ Bil.) through easier financial
Asia-Pacific Corporate (Financial and NonFinancial) New Bond
Issuance conditions but also fiscal
2016 2017 2018 2019 2020 YTD
support through special
250
project bonds.
200 • Most of these special
project bonds were issued
150
in March and April, at the
100 height of the COVID-19
50 disruptions, as well as
July and August’s
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
“stimulus” during recovery
phase.
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Asia-Pacific New Issuance By Market • In contrast to local bond
issuance, foreign bond
(Bil. USD) 2016 2017 2018 2019 2020 YTD issuance by Asia
Pacific firms has only
1,400 recently recovered,
1,312
bringing it back to about
the same pace as
1,200 2019.
1,082
1,028 • Very low levels of
976
1,000 activity in April offset
879 the strong start to the
year, after which
800 issuance activity
recovered to the 2018-
2019 average pace.
600
• Geographically, the
403 385 388
recovery has been
400 uneven. China
302 288
continues to account for
most offshore
200 borrowing in the region,
followed by the larger
0
developed markets.
Domestic Foreign There has been much
thinner activity from
Emerging Asian entities.
ow the line Data as of Aug. 31, 2020. Source: S&P Global Ratings Research; Thomson Reuters.
8
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Outlooks
Summary
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Historical Averages | By Sector
• While compared with the sector historical averages, Media & Entertainment
(including lodging companies) and Automotive sectors show the most current
downside risk; upgrade potential led by healthcare.
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APAC Downgrade Potential
Differentiated Across Region – Tiger Economies
And Other
10-Year Average 5-Year Average 31-Aug-20
30% Developed Asia:
28%
27% Downgrade
potential remains
25% elevated when
compared with both
20% 20% five-year and 10-
20%
18%
year averages due
17% to the pandemic
15% and the ongoing
15%
global economic
12% recession.
10%
10%
– Rest of APAC:
Downgrade
5%
potential remained
high as of end of
August, above both
0%
historical averages.
Developed APAC Tiger Economies Emerging APAC
Data as of Aug. 31, 2020 and exclude sovereign. Source : S&P Global Ratings Research. Tiger Economies includes Singapore, South Korea, Taiwan
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• Asia-Pacific negative bias is led by Malaysia, while positive bias is led by Singapore (despite small sample size)
(Total Issuer Counts)
SAR – Special Administrative Region. Data as of Aug. 24, 2020. Note: Numbers in parentheses refer to the number of entities included in the calculation; Excludes
developing outlook; Includes Financial & Non-Financial Companies. Parents only. Source: S&P Ratings Research.
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• The vast majority of rated issuers in APAC are investment-grade. Transportation continues to have the highest share of
speculative-grade, at 7 out of 11 rated companies, followed by metals & mining (11 of 22), health care (2 of 4), and
building materials (3 of 6). Real estate has the highest number of speculative-grade issuers, at 21 out of 61 rated
companies.
APAC Corporates (Financial and NonFinancial) Ratings Distribution
(Number Of Issuers) 0 20 40 60 80 100 120 140 160
Automotive
Capital Goods
Chemicals, Packaging & Environmental Services
Consumer Products
Diversified
Financials (ex. Insurance)
Forest Products & Building Materials
Health Care
High Technology
Homebuilders/Real Estate Co.
Insurance
Media & Entertainment
Metals, Mining & Steel
Oil & Gas
Retail/Restaurants
Telecommunications
Transportation
Utility
AAA AA A BBB BB B CCC & Below
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Data as of September 10, 2020. Source: S&P Global Ratings.
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• Roughly 41% of the APAC non-financial corporate
spec-grade universe remains vulnerable to credit deterioration (i.e. • Within non-financial corporates, the majority of those
spec-grade with negative outlook/CW negative). This is down from poised for deterioration are in real estate and utilities (15
44% in June. More importantly, the share of CW negative each), autos (13) and media/entertainment incl.
placements within this segment has fallen to 8% from 21% in lodging/leisure (9). Majority of these are on negative
June, suggesting less imminent risks of downgrades in the short outlook as opposed to CW negative placements.
term.
• Among the eight riskiest issuers (B- and below), there are
• Meanwhile, 52% of speculative-grade credits carry a stable rating, no CW negative placements (compared to 2 of 9 in June).
up from 47% last quarter.
Non-financial Corp - Ratings Dist. and Non-financial Corporates Ratings Outlooks
Outlooks Across Rating Category
60 0 20 40 60 80 100
Automotive
50 Capital Goods
Chemicals, Packaging &…
Consumer Products
40 Diversified
Financials (ex. Insurance)
Forest Products & Building Materials
30 Health Care
Riskiest issuers
High Technology
Homebuilders/Real Estate Co.
20 Insurance
Media & Entertainment
Metals, Mining & Steel
10
Oil & Gas
Retail/Restaurants
Telecommunications
0
Transportation
B+
-
A+
-
B+
A
B
+
B-
+
A
B
BB -
CC -
AA
BB
C-
C+
AA
BB
Utility
A
B
AA
BB
AA
BB
BB
CC
Negative Outlook/CW Negative Stable Positive Outlook/CW Positive CW Neg Negative Outlook Stable Positve Outlook/CW Pos
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Data as of September 20, 2020. Source: S&P Global Ratings
14
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• Two fallen angels in 2020 (China (July) and India (June) • Eight of the 13 are in the automotive, homebuilder and real
based); 13 potential fallen angels (through Aug. 31) in the estate companies, or utilities sectors. In terms of affected
region, almost the highest since the taper tantrum, affecting debt, automotive are at the top (Japan –based Nissan Motor
roughly half the amount of debt during that period. Co. Ltd. And China – based Zhejiang Geely Holding Group
Co. Ltd.), followed by a single telco in India.
Potential Fallen Angels Approach “Taper Automotive, real estate, and utilities lead
Debt (in Tantrum” Levels, Though Slowing Count Of potential fallen angels
Million $) issuers Debt (in Count Of
Million $) issuers
45000 18
12000 4
40000 16
10000
35000 14 3
30000 12 8000
25000 10 6000 2
20000 8
4000
15000 6 1
2000
10000 4
5000 2 0 0
es
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ies
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om
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ta
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te
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om
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31 8
31 9
31 0
31 1
31 2
31 3
31 4
31 5
31 6
31 7
31 8
31 9
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31
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PFA Issuer Debt (in Million $)
pa
ls,
ic a
em
Ch
Issuer Debt (in Million $)
ow the line Data as of Aug. 31, 2020. Source: S&P Global Ratings
15
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Defaults
Summary
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Used with accent colors: by using Insert g Header & Footer g Enter / change text g Click Apply All.Global Rating Actions
• With a lower ratings profile at the start of the current crisis, • Downgrades account for the vast majority of rating actions
downgrade tallies are rapidly approaching levels seen during the across geographies, with downgrade ratios exceeding other
Great Financial Crisis. Despite relatively fewer ratings actions periods of stress.
compared to the rest of the world, APAC has seen triple the
number of actions for 2020 YTD year-on-year, predominantly
downgrades.
Downgrade Tallies By Region Global Downgrade Ratio
(Count Of Asia/Pacific EMEA Latin America North America North America Latin America EMEA Asia/Pacific
Issuers)
1400
90%
95%
1200 2020 YTD
94%
94%
1000
839 861
72%
800
85%
2019
58%
600 67%
508
77 89
400
82%
315 316 87%
200 51 2009
88%
134
95 83%
60 81
0
2009 2019 2020 YTD
0% 20% 40% 60% 80% 100%
Data as of Aug. 31, 2020. Source: S&P Global Ratings.
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17
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Country Rating Outlook 5 Year CDS Spread Median Rating Financials (OLCW) Median Rating Non - Financials(OLCW)
Australia AAA Negative 15 A- BBB
Bangladesh BB- Stable NM B+
China A+ Stable 37 A BBB
Cook Islands B+ Positive NM
Fiji BB- Negative NM
Hong Kong AA+ Stable 43 A A
India BBB- Stable 82 BBB-
Indonesia BBB Negative 93 B+
Japan A+ Stable 17 A+ A-
Korea AA Stable NM A BBB+
Malaysia A- Negative 46 BBB+
Mongolia B Stable 409
New Zealand AA Positive 16 A+ BBB
Pakistan B- Stable 458 B-
Papua New Guinea B- Stable NM
Philippines BBB+ Stable 46 BBB
Singapore AAA Stable NM A- BBB+
Sri Lanka B- Stable 805 B-
Taiwan AA- Stable NM A- BBB+
Thailand BBB+ Stable 38 A- BBB+
Vietnam BB Stable 117 BB-
Note: Foreign currency ratings. NM indicates not meaningful. Red means speculative-grade rating, and blue means investment-grade rating. Data as of Aug. 31, 2020.
Source: S&P Global Ratings Research. S&P Capital IQ. CDS Spread is as of Aug. 31, 2020.
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18
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(Number Of Issuers)
COVID - 19/Oil Price Rating Actions By Country
20
18
16
14
12
10
8
6
4
2
0
South Korea
South Korea
South Korea
Singapore
Singapore
Singapore
Singapore
Indonesia
Indonesia
Indonesia
Indonesia
Indonesia
Sri Lanka
Australia
Australia
Australia
Australia
Australia
Marshall Islands
Marshall Islands
Marshall Islands
Marshall Islands
Greater China
Greater China
Greater China
Greater China
Greater China
Greater China
Japan
Japan
Japan
Japan
Japan
Japan
Malaysia
Papua New Guinea
Malaysia
Malaysia
Thailand
Thailand
India
India
India
India
Fiji
New Zealand
New Zealand
New Zealand
New Zealand
New Zealand
March April May June July August
Downgrade Downgrade + CW Change OL Change CreditWatch Negative
ow the line Note: Data includes Sovereign. Data from Feb. 3, 2020 to Aug. 31, 2020. Greater China includes mainland China, Taiwan, Macao and Hong Kong. Source: S&P Global
Ratings.
19
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Sector Breakdown Of Corporate And Sovereign Debt Amount Impacted By
COVID-19 & Oil Price-Related Actions
(Number Of Issuers)
Banks (42) 630.6
Sovereign (8) 218.2
Autom otive (21) 144.7
Building m aterials (2) 38.5
Energy (12) 35.2
Transportation (17) 29.0
Chemicals (6) 24.4
Real estate (22) 21.2
Capital goods (12) 21.2
Insurance (17) 17.9
He alth care (2) 13.9
Utilities (6) 11.8
Media and e ntertainment (4) 11.2
NBFI (13) 9.9
Transportation infra (8) 8.5
Hote ls and gam ing (6) 7.4
Business and consumer service s (3) 3.3
Metals and mining (6) 3.2
Retailing (7) 1.5
Technology (6) 1.3
Cons umer products (3) 0.2
0 100 200 300 400 500 600 700
($ Bil)
Downgrade + CreditW atch Downgrade CreditWatch Negative OL Change
ow the line Note: Data includes Sovereign. Data from Feb. 3, 2020 to Aug. 31, 2020. Greater China includes mainland China, Taiwan, Macao and Hong Kong. Source: S&P Global
Ratings.
20
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APAC Rating Actions (Including Downgrades and
(Number Of Outlook/CreditWatch Revisions)
Issuers) Rating Downgrade Outlook / CreditWatch Revisions
40
37
35
30 28
26
25
20
20
16
15
12
10 10 10
10 8
7 7 7
5
5 4
3 3
2 2 2
1 1 1 1
0
e
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a
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ap
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Note: Data includes Sovereign. Data from Feb. 3, 2020 to Aug. 31, 2020. Greater China includes mainland China, Taiwan, Macao and Hong Kong. Source:
ow the line S&P Global Ratings.
21
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APAC weakest links rose and remain near record highs, indicating higher likely default rates for the region
Weakest Links Count (lhs) Weakest Link Share of Speculative-Grade Population (%) (rhs)
14 14%
12 12%
10 10%
8 8%
6 6%
4 4%
2 2%
0 0%
Aug-17 Feb-18 Aug-18 Feb-19 Aug-19 Feb-20 Aug-20
Default rate continues to rise for APAC, highest monthly default rate seen since 2017
(%) APAC Developed APAC Tiger Economies Emerging APAC
12
Developed APAC, 11.43
10
8
APAC, 5.49
6
4
Emerging APAC, 5.42
2
0 Tiger Economies, 1.85
ow the line
2017 2018 2019 2020
Data as of Aug. 31, 2020 and default rates as of July 31, 2020. TE – Tiger Economies. OD – Other Developed. Tiger Economies includes Singapore,
South Korea, Taiwan and Hong Kong. Other developed includes Australia, New Zealand, and Japan. Source: S&P Global Ratings Research.
22
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APAC corporate defaults so far in 2020 ( YTD 12 Defaulters)
Date Parent Company Country Sub sector To From Reason
1/14/2020 Qinghai Provincial Investment Group Co. Ltd. China Metals, mining, and steel D CCC- Missed interest payments
2/21/2020 Tunghsu Group Co. Ltd., China High technology SD CCC- Missed principal and interest payments
3/12/2020 Confidential Confidential Metals, mining, and steel SD CCC- Confidential
3/19/2020 Geo Energy Resources Ltd. Singapore Metals, mining, and steel SD B- Distressed exchange
4/6/2020 FE Investments Ltd. (FE Investments Group Limited) New Zealand Finance companies D CCC Missed interest payments
4/7/2020 Speedcast International Ltd. Australia Telecommunications D CCC Missed principal and interest payments
4/30/2020 Virgin Australia Holdings Ltd. Australia Transportation D CC Chapter 15
5/11/2020 Yihua Enterprise (Group) Co. Ltd. China Consumer products SD CCC Missed interest payments
6/23/2020 Boart Longyear Limited Australia Metals, Mining & Steel SD CC Missed interest payments
7/7/2020 Confidential China Homebuilders/Real Estate Co. D CC Confidential
7/8/2020 PT Modernland Realty Tbk. Indonesia Homebuilders/Real Estate Co. SD CCC- Missed principal payments
7/17/2020 Seadrill Partners LLC (Seadrill Ltd.) Marshall Islands Oil & Gas Exploration & Production SD CCC Missed interest payments
APAC default rate rises to 5.49% by end of July 2020
Count Of Defaults Tally (LHS) Speculative Grade Default rate in (%, RHS) %
Issuers
18 8
16 7
14 6
12
5
10
4
8
3
6
4 2
2 1
0 0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
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Data as of Aug. 31, 2020. Default data as of July 31, 2020. Source: S&P Global Ratings
23
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Additional Details
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(Bil. USD) (Bil. USD)
2018 2019 2020
7 90
80
6
70
5
60
4 50
40
3
30
2
20
1
10
0 0
Hong Kong Indonesia Korea, Republic Malaysia New Zealand Philippines Thailand China
of
YTD data as of Aug. 31, 2020; includes local / foreign currencies. Source: S&P Global Ratings Research.
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S&P Sovereign Rating (as Issuance
Issue Date Issuer Country Market Place S&P Issue-Rating of Aug. 31, 2020) Security Description Currency (US $ Mil.)
Peoples Republic of
26-Feb-20 China China China Public NR A+ 2.240% Senior Bonds due '23 CNY 6124
Peoples Republic of
10-Mar-20 China China China Public NR A+ 3.390% Fxd/Straight Bd due '50 CNY 5320
Chongqing Municipal
20-Feb-20 Government China China Public NR A+ 3.680% Fxd/Straight Bd due '50 CNY 3179
Peoples Republic of
11-Feb-20 China China China Public NR A+ 2.200% Fxd/Straight Bd due '22 CNY 3015
Peoples Republic of
6-Jan-20 China China China Public NR A+ 2.250% Senior Bonds due '21 CNY 3011
19-Feb-20 Gov of Xingjiang Uygur China China Public NR A+ 3.760% Senior Bonds due '50 CNY 2115
12-Mar-20 Gov of Xingjiang Uygur China China Public NR A+ 3.440% Fxd/Straight Bd due '40 CNY 1460
People's Government
18-Mar-20 of Jilin P China China Public NR A+ 3.580% Senior Bonds due '50 CNY 1419
Chongqing Municipal
20-Feb-20 Government China China Public NR A+ 3.680% Fxd/Straight Bd due '50 CNY 1396
People's Government
18-Mar-20 of Jilin P China China Public NR A+ 2.940% Senior Bonds due '30 CNY 1235
7-Jan-20 Indonesia Republic Indonesia U.S. Public BBB BBB 2.850% Global Notes due '30 USD 1200
7-Jan-20 Indonesia Republic Indonesia U.S. Public BBB BBB 0.900% Global Notes due '27 EUR 1111
People's Government
14-Feb-20 of Shanxi China China Public NR A+ 3.460% Fxd/Straight Bd due '40 CNY 1045
People's Government
18-Mar-20 of Jilin P China China Public NR A+ 2.940% Senior Bonds due '30 CNY 1030
People's Government
16-Jan-20 of Shanxi China China Public NR A+ 3.620% Fxd/Straight Bd due '35 CNY 939
2-Jan-20 Gov of Xingjiang Uygur China China Public NR A+ 3.760% Senior Bonds due '40 CNY 862
7-Jan-20 Indonesia Republic Indonesia U.S. Public BBB BBB 3.500% Global Notes due '50 USD 800
Inner Mongolia
21-Feb-20 Autonomous Reg China China Public NR A+ 2.880% Fxd/Straight Bd due '25 CNY 740
People's Government
14-Feb-20 of Shanxi China China Public NR A+ 3.430% Fxd/Straight Bd due '35 CNY 716
People's Government
14-Feb-20 of Shanxi China China Public NR A+ 3.130% Fxd/Straight Bd due '30 CNY 716
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YTD data as of Aug. 31, 2020; 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 Research.
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Issuance (US
Issue Date Maturity Date Issuer Country Sector Market Place S&P Issue - Rating Security Description Currency $ Mil)
Financial 4.550% Gtd Mdm-Trm
14-Apr-20 21-Apr-50 Petronas Capital Ltd Malaysia Institution U.S. Private NR Nts due '50 US 2750
Mitsubishi UFJ Finl Grp 2.193% Global Notes
18-Feb-20 25-Feb-25 Inc Japan Banks U.S. Public A- due '25 US 2600
Japan Bk for Intl 0.625% Gtd Global Nts
8-Jul-20 15-Jul-25 Cooperation Japan Banks U.S. Public A+ due '25 US 2497
Takeda Pharmaceutical 2.050% Sr Unsecurd
29-Jun-20 31-Mar-30 Co Ltd Japan Healthcare U.S. Public BBB+ Nts due '30 US 2495
High 2.390% Medium-Term
27-May-20 3-Jun-30 Tencent Holdings Ltd China Technology U.S. Private A+ Nts due '30 US 2249
Japan Bk for Intl 1.750% Global Notes
16-Jan-20 23-Jan-23 Cooperation Japan Banks U.S. Public A+ due '23 US 2243
Financial 3.500% Gtd Mdm-Trm
14-Apr-20 21-Apr-30 Petronas Capital Ltd Malaysia Institution U.S. Private NR Nts due '30 US 2222
Finance 12.000% Gtd Sr Notes
21-Jan-20 24-Oct-23 Scenery Journey Ltd China Company Euro Public B due '23 US 2000
Finance 11.500% Gtd Sr Notes
21-Jan-20 24-Oct-22 Scenery Journey Ltd China Company Euro Public B due '22 US 2000
Takeda Pharmaceutical 3.175% Sr Unsecurd
29-Jun-20 9-Jul-50 Co Ltd Japan Healthcare U.S. Public BBB+ Nts due '50 US 2000
High 3.240% Medium-Term
27-May-20 3-Jun-50 Tencent Holdings Ltd China Technology U.S. Private A+ Nts due '50 US 1999
Japan Bk for Intl 0.625% Gtd Global Nts
13-May-20 22-May-23 Cooperation Japan Banks U.S. Public A+ due '23 US 1997
China Construction Bank
17-Jun-20 24-Jun-30 Corp China Banks Euro Public BBB+ Sub Cap Notes due '30 US 1996
Mitsubishi UFJ Finl Grp 1.412% Global Notes
13-Jul-20 17-Jul-25 Inc Japan Banks U.S. Public A- due '25 US 1750
2.000% Sr Secured Nts
9-Jan-20 16-Jan-25 Westpac Banking Corp Australia Banks U.S. Private NR due '25 US 1747
Sumitomo Mitsui Finl Grp 1.474% Global Notes
29-Jun-20 8-Jul-25 Inc Japan Banks U.S. Private A- due '25 US 1500
Takeda Pharmaceutical 3.025% Sr Unsecurd
29-Jun-20 9-Jul-40 Co Ltd Japan Healthcare U.S. Public BBB+ Nts due '40 US 1500
1.851% Global Notes
6-Jul-20 16-Jul-25 Nomura Holdings Inc Japan Broker U.S. Public BBB+ due '25 US 1500
2.648% Fxd/Straight Bd
9-Jan-20 16-Jan-25 Nomura Holdings Inc Japan Broker U.S. Public BBB+ due '25 US 1500
Sumitomo Mitsui Finl Grp 2.130% Global Notes
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YTD data as of Aug. 31, 2020; 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 Research.
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Additional Details
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APAC Maturity Wall – Financial And Nonfinancial Corporates
(Bil. $)
As of 7/1/2019 As of 1/1/2020 As of 7/1/2020 – Strong issuance in
the first half of 2020
300 has contributed to a
increase in the
amount of APAC
250
corporate debt
maturing through
200 2025.
– Maturities peak in
150 2022, when $261
billion is scheduled to
mature.
100
– Almost 97% are
bonds through 2025,
50 of which 92% are
investment grade
bonds in APAC.
0
2020.2H 2021 2022 2023 2024 2025
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Note: Includes bonds, loans, and revolving credit facilities that are rated by S&P Global Ratings on the respective report date. Source: S&P Global Ratings Research.
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Category
– ‘A’ category debt maturities through 2025 are highest with $212 billion in APAC non financial corporates.
– ‘A’ category debt maturities through 2025 are highest with $271 billion in APAC financial corporates.
– Compared with nonfinancials, financial services have a greater proportion of highly rated debt.
Nonfinancial Corporate Maturities By Rating Category Financial Corporate Maturities By Rating Category
AAA AA A BBB BB B CCC and lower AAA AA A BBB BB B CCC and lower
(Bil. $) (Bil. $)
140
160
120 140
100 120
100
80
80
60
60
40
40
20 20
0 0
2020.2H 2021 2022 2023 2024 2025 2020.2H 2021 2022 2023 2024 2025
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Note: Data as of July 1, 2020. Includes bonds, loans, and revolving credit facilities that are rated by S&P Global Ratings. Source: S&P Global Ratings Research.
30
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Used with accent colors: by using Insert g Header & Footer g Enter / change text g Click Apply All.Related Research
– COVID-19- And Oil Price-Related Public Rating Actions On Corporations, Sovereigns, And
Project Finance To Date, Sep. 29, 2020
– Credit Conditions Asia-Pacific: Recovery Roads Diverging, Sep. 28, 2020
– 'BBB' Pulse: Potential Fallen Angels Remain Stable In August, With Five Outlook
Revisions To Stable And Just One Downgrade , Sep. 28, 2020
– Oil And Gas Defaults Continue To Climb, Sep. 25, 2020
– Emerging Markets Face Uneven Recoveries After Economies Hit Low Points In The
Second Quarter, Sep. 9, 2020
– The Still-High Weakest Links Tally Contracts As Defaults Rise, Aug. 18, 2020
– Global Refinancing--Rated Corporate Debt Due Through 2025 Nears $12 Trillion, July 27,
2020
– Global Financing Conditions: Bond Issuance Is Expected To Finish 2020 Up 6% After A
Strong Second Quarter, July 27, 2020
– Global Corporate Debt Market: State Of Play In 2020, June 25, 2020
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