FW: RHB FIC Credit Market Monthly Review - 8/5/15

Credit Market Monthly Review – April 2015

Sentiment Boosted by Oil Prices, China Easing on RRR

Market Review

¨   Asian credits gain on oil prices and further easing in China.

¨   In Singapore, SORs tightened post MAS decision.

¨   MYR bond maintain positive momentum; quasi government led flows.

Flows and Issuance Trends

¨   USD issuers raised USD24bn in April driven by the heavyweights oil & gas - CNOOC and SINOPE.

¨   SGD issuances pick-up as uncertainty ebbs post monetary policy decision.

¨   More active primary market in MYR.

¨                   

Sector Highlights

¨   Banking: Mixed earnings performance and asset quality; BNM to classify R&R loan as “impaired loan”; BI to loosen LDR calculation.

¨   Singapore Oil & Gas: OSV sentiment marginally improved, though too early to call a bottoming-out.

¨   Malaysia power sector is picking-up.

Rating Trends

¨   Rating downgrades in HY real estate, O&G and commodities.

¨   Yanlord downgraded on weakening credit profile.

¨   In Malaysia, MARC put IJM on negative outlook

Outlook

¨   Market lack of fundamental catalyst/s to drive yields lower, but technical suggest credits to remain stable in May.

¨   Maturity profile is highly manageable in May.