Moody's Investors Service says that most rated non-financial companies in Asia (excluding Japan) should be able to address their bond maturities through 2022 as of the end of 2017.
Moody's puts the total for these bonds at about $850 billion, with a peak of around $209 billion in 2020, which includes both investment grade and speculative grade bonds. The 10 largest issuers account for about 31 per cent of the $850 billion.
“We believe most companies will be able to address these maturities, given the level of investor appetite for bonds, as indicated by issuance averaging about $250 billion per year for the past three years,” say Wan Hee Yoo, a Moody's Vice President and Senior Credit Officer.
“Furthermore, around 79 per cent of these bonds are issued by investment-grade companies which show solid credit quality and strong access to funding market, while the maturities are well spread out, market liquidity is good, and global business conditions are generally stable to favorable,” adds Yoo.
Moody's conclusions are contained in its just-released report, “Non-financial companies - Asia (ex Japan): Most rated companies can address $850 billion in bond maturities through 2022”.
The report covers the maturities of nearly 5,990 non-financial corporate bonds issued by 405 companies.