Moody’s confirms strength of Asian companies

Moody’s projects that less than 10% of companies in Asia Pacific (ex Japan) with loan financial covenants may be at risk of breaching these agreements in the coming year. Although the figure sounds small, especially compared to the US and Europe, the ratings agency also flagged the fact that loan covenants are not as common in Asia as elsewhere. Read EuroWeek on Friday to find out whether bankers agree with the Moody’s report and if they think the lack of loan agreements poses a risk for the future.