FW: RHB FIC Credit Markets Weekly - 22/1/18

 

 

 

22 January 2018

Credit Markets Weekly

US Federal Government Shuts Down; BNM MPC to Be Monitored.

SUMMARY:

¨      MYR Credit Market: MYR bull rally, while MGS bear steepen; Govvies trade volume slowed down to MYR11.49bn, but still remained ahead of the MYR11.22bn 3-month weekly average; Secondary flows saw a pick up from the previous week. Total corporate bonds/sukuks recorded were just under MYR2.8bn.

¨      Corporate News – RAM Ratings puts MRCB Southern Link Berhad BB3/ on negative rating watch from BB3/Neg; RAM Ratings affirmed Samalaju Industrial Port Sdn Bhd at AA1/Sta; RAM Ratings reaffirmed AA1/Stable ratings of Bintulu Port Holdings Berhad; RAM Rating affirmed Gamuda Berhad and Bandar Serai Development Sdn Bhd at AA3/Sta; RAM Ratings reaffirmed  AA2/Neg rating of Bright Focus Berhad; RAM Ratings affirmed EKVE Sdn Bhd's guaranteed facility at AAA/Sta; RAM Rating affirmed Manjung Island Energy Berhad at AAA/Sta; RAM Ratings reaffirmed the AAA/Sta rating of Cagamas MBS Berhad's Residential Mortgage-Backed Securties; MARC Ratings affirmed AAAIS/Sta rating on TNB Western Energy Berhad; MARC affirmed its AA-_IS ratings on Northport (Malaysia) Bhd.

¨      APAC USD Credit Market: US federal government shuts down as the progress of the spending bill negotiations between House and Senate stalled over immigration. The USTs stumbled to fresh lows.

¨      Rating Actions - Moody's revised Malaysia Airports Holdings from A3/Neg to A3/Sta; Fitch upgraded Parkson Retail Group Ltd. to B-/Sta from CCC/Pos; Moody's upgraded Fosun International Ltd to Ba2/Sta from Ba3/Pos; Moody's revised on Medco Energi Internasional Tbk PT from B2/Sta to B2/Pos; Fitch revised Lifestyle International Holdings Ltd. from BB+/Neg to BB+/Sta; Moody's upgraded Sunac China Holdings Limited to B3/Sta from B3/Neg; Fitch downgraded Adani Transmission Limited to BBB-/Neg from BBB-/Sta; Fitch downgraded Inner Mongolia High-Grade Highway Construction and Development Company Ltd to BBB- with a ratings watch negative from BBB/Sta; S&P revised Adani Transmission Ltd. from BBB-/Sta to BBB-/Neg.

 

Table 1: Index Weekly Movements

Indices	19-Jan	12-Jan	Weekly Chg (bps)
iTraxx AxJ 5y IG	63.1	60.7	2
SOR 2y (%)	1.52	1.47	5
SOR 5y (%)	1.91	1.83	8
Malaysia 5y CDS	55.4	52.5	3
MGS 3y (%)	3.35	3.32	3
MGS 5y (%)	3.54	3.51	3
MGS 7y (%)	3.92	3.84	9
MGS 10y (%)	3.93	3.86	7
AAA 5y Spread* (bps)	77	80	-4
AAA 10y Spread* (bps)	75	85	-10
AA 5y Spread* (bps)	107	112	-5
AA 10y Spread* (bps)	109	120	-11

Source: Bloomberg, BNM, RHBFIC        *MYR-denominated bonds

 

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