Moody's: Credit conditions in Asia will be stable in 2018 as growth remains broad-based

The US-based ratings agency, Moody’s Investor Service, in its latest report, offered key insights into the credit conditions in Asia for 2018.

Key Points:

“Moody's Investors Service says that credit conditions in Asia will be stable in 2018, supported by broad-based regional and global economic growth, a recovery in global trade, and broadly accommodative monetary policy.

Moody's view is in turn reflected in its outlooks for the region's sovereigns, and banking and corporate sectors, which saw increasing shares of stable and positive outlooks in 2017.

At the same time, various downside risks are apparent, including tighter financing conditions, the threat of increased trade protectionism and geopolitical tensions.

The report notes that broad-based economic growth globally and in the Asia-Pacific region is expected in 2018, even as China's growth slows mildly in line with the authorities' desire for better management of leverage and financial risks.

Meanwhile, positive growth momentum will continue in Japan and recover in India, while the Philippines and Vietnam will be the standouts among ASEAN economies in terms of economic performance.”