Moody’s Investors Services’ Asian Liquidity Stress Indicator (LSI) decreased in November, a sign of improvement in speculative-grade liquidity.
"The Asian LSI improved in November to 26.4% [from 27.6% the prior month], largely due to the addition of new issuers, but remains weaker than the long-term average of 23.1%," said Brian Grieser, a Moody's vice president and senior credit officer. "The momentum in high-yield issuance continued in November, with rated issuance totaling $1.9 billion in the month, raising year-to-date issuance to a record $33.9 billion."
The number of rated high-yield companies with Moody’s weakest speculative-grade liquidity score (SGL-4) decreased to 39 from 40, while the total number of rated high-yield companies increased to 148 from 145.
For North Asian high-yield companies, the liquidity stress sub-indicator decreased to 27.8% in November from 28% in October, Moody’s said. The Chinese sub-indicator stayed stable at 28.7% from 28.9%, while the Chinese high-yield industrials subsector decreased to 40% from 43.2%, with new ratings assignments during November being the deciding factor.
In South and Southeast Asian high-yield companies, the liquidity stress sub-indicator decreased to 23.5% in November from 26.9% the month prior.
– Nicholas Stern, managing editor