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Moody's publishes August edition of ‘Structured Thinking: Asia Pacific’ newsletter

·24 mins read

<!DOCTYPE html> <html lang="" xml:lang=""> <head> <title>/nwsys/www/images/PBS_1242599</title> <meta http-equiv="Content-Type" content="text/html; charset=UTF-8"/> <meta name="generator" content="pdftohtml 0.36"/> <meta name="date" content="2020-08-30T21:05:28+00:00"/> <style type="text/css"> <!-- .xflip { -moz-transform: scaleX(-1); -webkit-transform: scaleX(-1); -o-transform: scaleX(-1); transform: scaleX(-1); filter: fliph; } .yflip { -moz-transform: scaleY(-1); -webkit-transform: scaleY(-1); -o-transform: scaleY(-1); transform: scaleY(-1); filter: flipv; } .xyflip { -moz-transform: scaleX(-1) scaleY(-1); -webkit-transform: scaleX(-1) scaleY(-1); -o-transform: scaleX(-1) scaleY(-1); transform: scaleX(-1) scaleY(-1); filter: fliph + flipv; } --> </style> </head> <body bgcolor="#A0A0A0" vlink="blue" link="blue"> <!-- Page 1 --> <style type="text/css"> <!-- p {margin: 0; padding: 0;} .ft00{font-size:18px;font-family:Times;color:#000000;} .ft01{font-size:18px;font-family:Times;color:#1257c7;} .ft02{font-size:13px;font-family:Times;color:#0d0c0c;} .ft03{font-size:13px;font-family:Times;color:#000000;} .ft04{font-size:13px;font-family:Times;color:#1b62b7;} .ft05{font-size:13px;line-height:30px;font-family:Times;color:#000000;} .ft06{font-size:13px;line-height:30px;font-family:Times;color:#0d0c0c;} --> </style> <div id="page1-div" style="position:relative;width:918px;height:1188px;"> <img width="918" height="1188" src="http://mco.acquiremedia.com/images/PBS_1242599001.png" alt="background image"/> <p style="position:absolute;top:155px;left:108px;white-space:nowrap" class="ft00"><b>Research Announcement:&#160;</b></p> <p style="position:absolute;top:155px;left:364px;white-space:nowrap" class="ft01"><b>Moody's publishes August edition of</b></p> <p style="position:absolute;top:180px;left:108px;white-space:nowrap" class="ft01"><b>‘Structured Thinking: Asia Pacific’ newsletter</b></p> <p style="position:absolute;top:216px;left:108px;white-space:nowrap" class="ft02">Hong Kong, August 31, 2020 --</p> <p style="position:absolute;top:246px;left:108px;white-space:nowrap" class="ft05">»&#160;This month's edition covers the credit effects of coronavirus disruptions<br/>»&#160;Reports cover Japan, India, Korea and Australia</p> <p style="position:absolute;top:312px;left:108px;white-space:nowrap" class="ft02">Moody's Investors Service has released the August edition of its ‘Structured Thinking: Asia Pacific’</p> <p style="position:absolute;top:332px;left:108px;white-space:nowrap" class="ft02">newsletter, which this month covers the credit consequences of the coronavirus pandemic in Japan,</p> <p style="position:absolute;top:351px;left:108px;white-space:nowrap" class="ft06">India, Korea and Australia.<br/>For Japan, Moody’s says increased loan repurchasing by originators and high credit enhancement</p> <p style="position:absolute;top:401px;left:108px;white-space:nowrap" class="ft06">mitigates coronavirus-related risks for auto loan asset-backed securities (ABS).<br/>For India, Moody’s says the high take-up of coronavirus-related payment moratoriums and the</p> <p style="position:absolute;top:451px;left:108px;white-space:nowrap" class="ft02">economic downturn triggered by the pandemic are raising risks for ABS. Recent structural changes</p> <p style="position:absolute;top:470px;left:108px;white-space:nowrap" class="ft06">and credit enhancement build-up partially offset the growing credit challenges.<br/>For Korea, Moody’s say the performance of credit card ABS has been holding despite the fallout</p> <p style="position:absolute;top:520px;left:108px;white-space:nowrap" class="ft06">from coronavirus, but that risks are rising amid contracting economic growth.<br/>For Australia, Moody’s says a new liquidity facility for residential mortgage-backed securities (RMBS)</p> <p style="position:absolute;top:570px;left:108px;white-space:nowrap" class="ft02">and ABS by small lenders reduces the risk that deals will miss note interest payments because of</p> <p style="position:absolute;top:589px;left:108px;white-space:nowrap" class="ft06">coronavirus-related loan payment deferrals.<br/>The August edition of the 'Structured Thinking: Asia Pacific' newsletter contains the following reports:</p> <p style="position:absolute;top:650px;left:108px;white-space:nowrap" class="ft03">»&#160;Structured Finance – Australia: New liquidity facility reduces coronavirus-related payment deferral</p> <p style="position:absolute;top:670px;left:127px;white-space:nowrap" class="ft03">risks for small lenders’ deals</p> <p style="position:absolute;top:700px;left:108px;white-space:nowrap" class="ft03">»&#160;Structured Finance – India: Coronavirus fallout heightens risks, but structural changes provide</p> <p style="position:absolute;top:719px;left:127px;white-space:nowrap" class="ft03">some protection</p> <p style="position:absolute;top:750px;left:108px;white-space:nowrap" class="ft05">»&#160;Auto ABS – Japan: Loan repurchasing and structural strength mitigate coronavirus-related risks<br/>»&#160;Installment and auto loan ABS – Japan: Coronavirus fallout heightens risks for deals exposed to</p> <p style="position:absolute;top:799px;left:127px;white-space:nowrap" class="ft03">high share of corporate borrowers</p> <p style="position:absolute;top:830px;left:108px;white-space:nowrap" class="ft03">»&#160;Credit Card ABS – Korea: Performance holding up amid coronavirus fallout, but slowing economy</p> <p style="position:absolute;top:849px;left:127px;white-space:nowrap" class="ft03">heightens risks.</p> <p style="position:absolute;top:885px;left:108px;white-space:nowrap" class="ft02">Subscribers can access the report at:&#160;</p> <p style="position:absolute;top:885px;left:372px;white-space:nowrap" class="ft04">http://www.moodys.com/researchdocumentcontentpage.aspx?</p> <p style="position:absolute;top:904px;left:108px;white-space:nowrap" class="ft04">docid=PBS_1240971</p> <p style="position:absolute;top:935px;left:108px;white-space:nowrap" class="ft02">For PRC only: Neither MCO nor any of its majority-owned affiliates is a qualified credit rating agency</p> <p style="position:absolute;top:954px;left:108px;white-space:nowrap" class="ft02">within the PRC. Any rating assigned by MCO or any of its majority-owned affiliates: (1) does not</p> <p style="position:absolute;top:974px;left:108px;white-space:nowrap" class="ft02">constitute a rating as required under any relevant PRC laws or regulations; (2) cannot be included</p> <p style="position:absolute;top:993px;left:108px;white-space:nowrap" class="ft02">in any registration statement, offering circular, prospectus or any other documents submitted to the</p> <p style="position:absolute;top:1013px;left:108px;white-space:nowrap" class="ft02">PRC regulatory authorities; and (3) cannot be used within the PRC for any regulatory purpose or for</p> <p style="position:absolute;top:1032px;left:108px;white-space:nowrap" class="ft02">any other purpose which is not permitted under relevant PRC laws or regulations. For the purposes</p> </div> <!-- Page 2 --> <style type="text/css"> <!-- p {margin: 0; padding: 0;} .ft07{font-size:13px;line-height:23px;font-family:Times;color:#0d0c0c;} --> </style> <div id="page2-div" style="position:relative;width:918px;height:1188px;"> <img width="918" height="1188" src="http://mco.acquiremedia.com/images/PBS_1242599002.png" alt="background image"/> <p style="position:absolute;top:114px;left:108px;white-space:nowrap" class="ft02">of this paragraph, “PRC” refers to the mainland of the People’s Republic of China, excluding Hong</p> <p style="position:absolute;top:133px;left:108px;white-space:nowrap" class="ft06">Kong, Macau and Taiwan.<br/>NOTE TO JOURNALISTS ONLY: For more information, please call one of our global</p> <p style="position:absolute;top:183px;left:108px;white-space:nowrap" class="ft02">press information hotlines: New York <PhoneNo>+1-212-553-0376</PhoneNo>, London <PhoneNo>+44-20-7772-5456</PhoneNo>, Tokyo</p> <p style="position:absolute;top:202px;left:108px;white-space:nowrap" class="ft02"><PhoneNo>+813-5408-4110</PhoneNo>, Hong Kong <PhoneNo>+852-3758-1350</PhoneNo>, Sydney <PhoneNo>+61-2-9270-8141</PhoneNo>, Mexico City</p> <p style="position:absolute;top:222px;left:108px;white-space:nowrap" class="ft02"><PhoneNo>001-888-779-5833</PhoneNo>, São Paulo <PhoneNo>0800-891-2518</PhoneNo>, or Buenos Aires <PhoneNo>0800-666-3506</PhoneNo>. 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ALL INFORMATION CONTAINED HEREIN IS PROTECTED</p> <p style="position:absolute;top:566px;left:108px;white-space:nowrap" class="ft02">BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH</p> <p style="position:absolute;top:585px;left:108px;white-space:nowrap" class="ft02">INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER</p> <p style="position:absolute;top:605px;left:108px;white-space:nowrap" class="ft02">TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED</p> <p style="position:absolute;top:624px;left:108px;white-space:nowrap" class="ft02">FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM</p> <p style="position:absolute;top:644px;left:108px;white-space:nowrap" class="ft02">OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S</p> <p style="position:absolute;top:663px;left:108px;white-space:nowrap" class="ft07">PRIOR WRITTEN CONSENT.<br/>MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE</p> <p style="position:absolute;top:706px;left:108px;white-space:nowrap" class="ft02">NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED</p> <p style="position:absolute;top:725px;left:108px;white-space:nowrap" class="ft02">FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT</p> <p style="position:absolute;top:745px;left:108px;white-space:nowrap" class="ft07">IN THEM BEING CONSIDERED A BENCHMARK.<br/>All information contained herein is obtained by MOODY’S from sources believed by it to be</p> <p style="position:absolute;top:787px;left:108px;white-space:nowrap" class="ft02">accurate and reliable. Because of the possibility of human or mechanical error as well as other</p> <p style="position:absolute;top:807px;left:108px;white-space:nowrap" class="ft02">factors, however, all information contained herein is provided “AS IS” without warranty of any kind.</p> <p style="position:absolute;top:826px;left:108px;white-space:nowrap" class="ft02">MOODY'S adopts all necessary measures so that the information it uses in assigning a credit</p> <p style="position:absolute;top:846px;left:108px;white-space:nowrap" class="ft02">rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when</p> <p style="position:absolute;top:865px;left:108px;white-space:nowrap" class="ft02">appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot</p> <p style="position:absolute;top:885px;left:108px;white-space:nowrap" class="ft02">in every instance independently verify or validate information received in the rating process or in</p> <p style="position:absolute;top:904px;left:108px;white-space:nowrap" class="ft07">preparing its Publications.<br/>To the extent permitted by law, MOODY’S and its directors, officers, employees, agents,</p> <p style="position:absolute;top:947px;left:108px;white-space:nowrap" class="ft02">representatives, licensors and suppliers disclaim liability to any person or entity for any indirect,</p> <p style="position:absolute;top:966px;left:108px;white-space:nowrap" class="ft02">special, consequential, or incidental losses or damages whatsoever arising from or in connection</p> <p style="position:absolute;top:986px;left:108px;white-space:nowrap" class="ft02">with the information contained herein or the use of or inability to use any such information, even if</p> <p style="position:absolute;top:1005px;left:108px;white-space:nowrap" class="ft02">MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers</p> <p style="position:absolute;top:1025px;left:108px;white-space:nowrap" class="ft02">is advised in advance of the possibility of such losses or damages, including but not limited to:</p> </div> <!-- Page 4 --> <style type="text/css"> <!-- p {margin: 0; padding: 0;}--> </style> <div id="page4-div" style="position:relative;width:918px;height:1188px;"> <img width="918" height="1188" src="http://mco.acquiremedia.com/images/PBS_1242599004.png" alt="background image"/> <p style="position:absolute;top:114px;left:108px;white-space:nowrap" class="ft02">(a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant</p> <p style="position:absolute;top:133px;left:108px;white-space:nowrap" class="ft07">financial instrument is not the subject of a particular credit rating assigned by MOODY’S.<br/>To the extent permitted by law, MOODY’S and its directors, officers, employees, agents,</p> <p style="position:absolute;top:176px;left:108px;white-space:nowrap" class="ft02">representatives, licensors and suppliers disclaim liability for any direct or compensatory losses</p> <p style="position:absolute;top:195px;left:108px;white-space:nowrap" class="ft02">or damages caused to any person or entity, including but not limited to by any negligence (but</p> <p style="position:absolute;top:215px;left:108px;white-space:nowrap" class="ft02">excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt,</p> <p style="position:absolute;top:234px;left:108px;white-space:nowrap" class="ft02">by law cannot be excluded) on the part of, or any contingency within or beyond the control of,</p> <p style="position:absolute;top:254px;left:108px;white-space:nowrap" class="ft02">MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers,</p> <p style="position:absolute;top:273px;left:108px;white-space:nowrap" class="ft02">arising from or in connection with the information contained herein or the use of or inability to use</p> <p style="position:absolute;top:293px;left:108px;white-space:nowrap" class="ft07">any such information.<br/>NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS,</p> <p style="position:absolute;top:335px;left:108px;white-space:nowrap" class="ft02">COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF</p> <p style="position:absolute;top:355px;left:108px;white-space:nowrap" class="ft02">ANY CREDIT RATING, ASSESSMENT, OTHER OPINION OR INFORMATION IS GIVEN OR MADE</p> <p style="position:absolute;top:374px;left:108px;white-space:nowrap" class="ft07">BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.<br/>Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s</p> <p style="position:absolute;top:417px;left:108px;white-space:nowrap" class="ft02">Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and</p> <p style="position:absolute;top:436px;left:108px;white-space:nowrap" class="ft02">municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s</p> <p style="position:absolute;top:456px;left:108px;white-space:nowrap" class="ft02">Investors Service, Inc. have, prior to assignment of any credit rating, agreed to pay to Moody’s</p> <p style="position:absolute;top:475px;left:108px;white-space:nowrap" class="ft02">Investors Service, Inc. for credit ratings opinions and services rendered by it fees ranging from</p> <p style="position:absolute;top:495px;left:108px;white-space:nowrap" class="ft02">$1,000 to approximately $2,700,000. MCO and Moody’s Investors Service also maintain policies</p> <p style="position:absolute;top:514px;left:108px;white-space:nowrap" class="ft02">and procedures to address the independence of Moody’s Investors Service credit ratings and credit</p> <p style="position:absolute;top:534px;left:108px;white-space:nowrap" class="ft02">rating processes. Information regarding certain affiliations that may exist between directors of MCO</p> <p style="position:absolute;top:553px;left:108px;white-space:nowrap" class="ft02">and rated entities, and between entities who hold credit ratings from Moody’s Investors Service and</p> <p style="position:absolute;top:573px;left:108px;white-space:nowrap" class="ft02">have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted</p> <p style="position:absolute;top:592px;left:108px;white-space:nowrap" class="ft02">annually at&#160;</p> <p style="position:absolute;top:592px;left:188px;white-space:nowrap" class="ft04">www.moodys.com</p> <p style="position:absolute;top:592px;left:315px;white-space:nowrap" class="ft02">&#160;under the heading “Investor Relations — Corporate Governance —</p> <p style="position:absolute;top:612px;left:108px;white-space:nowrap" class="ft07">Director and Shareholder Affiliation Policy.”<br/>Additional terms for Australia only: Any publication into Australia of this document is pursuant to the</p> <p style="position:absolute;top:654px;left:108px;white-space:nowrap" class="ft02">Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited</p> <p style="position:absolute;top:674px;left:108px;white-space:nowrap" class="ft02">ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136</p> <p style="position:absolute;top:693px;left:108px;white-space:nowrap" class="ft02">972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale</p> <p style="position:absolute;top:713px;left:108px;white-space:nowrap" class="ft02">clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access</p> <p style="position:absolute;top:732px;left:108px;white-space:nowrap" class="ft02">this document from within Australia, you represent to MOODY’S that you are, or are accessing</p> <p style="position:absolute;top:752px;left:108px;white-space:nowrap" class="ft02">the document as a representative of, a “wholesale client” and that neither you nor the entity you</p> <p style="position:absolute;top:771px;left:108px;white-space:nowrap" class="ft02">represent will directly or indirectly disseminate this document or its contents to “retail clients” within</p> <p style="position:absolute;top:791px;left:108px;white-space:nowrap" class="ft02">the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as</p> <p style="position:absolute;top:810px;left:108px;white-space:nowrap" class="ft02">to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or</p> <p style="position:absolute;top:830px;left:108px;white-space:nowrap" class="ft07">any form of security that is available to retail investors.<br/>Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency</p> <p style="position:absolute;top:872px;left:108px;white-space:nowrap" class="ft02">subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc.,</p> <p style="position:absolute;top:892px;left:108px;white-space:nowrap" class="ft02">a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating</p> <p style="position:absolute;top:911px;left:108px;white-space:nowrap" class="ft02">agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization</p> <p style="position:absolute;top:931px;left:108px;white-space:nowrap" class="ft02">(“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-</p> <p style="position:absolute;top:950px;left:108px;white-space:nowrap" class="ft02">NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated</p> <p style="position:absolute;top:970px;left:108px;white-space:nowrap" class="ft02">obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit</p> <p style="position:absolute;top:989px;left:108px;white-space:nowrap" class="ft02">rating agencies registered with the Japan Financial Services Agency and their registration numbers</p> <p style="position:absolute;top:1009px;left:108px;white-space:nowrap" class="ft02">are FSA Commissioner (Ratings) No. 2 and 3 respectively.</p> </div> <!-- Page 5 --> <style type="text/css"> <!-- p {margin: 0; padding: 0;}--> </style> <div id="page5-div" style="position:relative;width:918px;height:1188px;"> <img width="918" height="1188" src="http://mco.acquiremedia.com/images/PBS_1242599005.png" alt="background image"/> <p style="position:absolute;top:114px;left:108px;white-space:nowrap" class="ft02">MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including</p> <p style="position:absolute;top:133px;left:108px;white-space:nowrap" class="ft02">corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated</p> <p style="position:absolute;top:153px;left:108px;white-space:nowrap" class="ft02">by MJKK or MSFJ (as applicable) have, prior to assignment of any credit rating, agreed to pay to</p> <p style="position:absolute;top:172px;left:108px;white-space:nowrap" class="ft02">MJKK or MSFJ (as applicable) for credit ratings opinions and services rendered by it fees ranging</p> <p style="position:absolute;top:192px;left:108px;white-space:nowrap" class="ft07">from JPY125,000 to approximately JPY250,000,000.<br/>MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory</p> <p style="position:absolute;top:234px;left:108px;white-space:nowrap" class="ft02">requirements.</p> </div> </body> </html>