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(Bloomberg) -- Bund futures (RX1) technical levels in focus.

• Daily Trend Bias: Bullish
• Comment: Bulls reassert positive momentum conditions after absorbing Thursday’s pressure at the risk-off induced gap area at 164.76-165.03
  • Resistance: 165.31-39; 165.56; 165.69; 165.96
  • Support: 165.12 (pivot); 164.85; 164.76-70 (uncovered close, 13-EMA); 164.58; 164.36-25
• NOTE: Roll-adjusted by difference in GFUT
• NOTE: Sejul Gokal is a FICC technical strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice

To contact the reporter on this story: Sejul Gokal in London at sgokal1@bloomberg.net To contact the editors responsible for this story: Ven Ram at vram1@bloomberg.net Keith Jenkins

--HIDENORI YAMANAKA

(Bloomberg) -- Here’s a roundup of Indian co. debt-rating changes.

• To get this story sent to your inbox real-time, run NI INRATINGS, click on Display & Edit, then Set Alert Delivery

DOWNGRADES

• Corporation Bank
  • Basel III Tier 1 bonds cut to A- from A at Crisil; Basel II perpetual, upper tier 2 notes reduced to A+ from AA-
  • Expects asset quality stress to remain elevated over next few quarters
• GLM Infratech
  • Term loan cut to D from BB+ at Brickwork
  • Cites weak liquidity position of the company, thereby impacting ability to timely service debt obligations
• Kkalpana Industries
  • Long-term bank facilities cut to BBB+ from A- at Care
  • Cites decline in profitability
• KK Milk Fresh
  • Fund-based facility cut to BB- from BBB- at Brickwork
  • Cites irregularities in servicing debt obligations
• Konark Structural
  • LT bank facilities cut to BB- from BB+ at Crisil
  • Cites decline in revenue
• Lanco Devihalli Highways
  • Fund-based facility cut to D from B- at Brickwork
  • Cites weak liquidity position of the company, thereby impacting ability to timely service debt obligations
• Lanco Hoskote Highway
  • Fund-based facility cut to C from C+ at Brickwork
  • Cites poor liquidity position, weak financial performance
• LEDVANCE
  • LT bank facilities cut to A from A+ at Crisil
  • Cites weak credit risk profile of parent LEDVANCE GmbH
• Supreme India
  • Fund-based facilities cut to BB+ from BBB- at Brickwork
  • Cites decline in revenues, profitability
• Union Bank of India
  • Basel III Tier 2 cut to AA+ from AAA at Crisil; Basel II perpetual, upper tier 2 also reduced to AA+ from AAA
  • Expects asset quality to remain under pressure in near term
• Vijaya Aero
  • LT bank facilities cut to D from B at Crisil
  • Cites delays in debt servicing
• Vodafone Mobile
  • NCDs cut to AA+ from AAA at India Ratings
  • Cites re-assessment of linkages with Vodafone Group

• K. R. Construction
  • LT bank facilities cut to BB- from BB+ at Crisil
  • Cites decline in revenue

UPGRADES

• Call Express
  • LT bank facilities raised to B+ from B at Crisil
  • Cites healthy booking levels
• Darcl Logistics
  • LT bank facilities raised to A- from BBB+ at Crisil
  • Cites significant improvement in financial risk profile post acquisition
• Delhi Aviation
  • LT bank facilities raised to BBB+ from BBB at Crisil
  • Cites stable, healthy operating profitability
• G. D. Overseas
  • LT bank facilities raised to BB from BB- at Crisil
  • Cites expected improvement in business risk profile over medium term
• Mayfair Housing
  • LT bank facilities raised to BBB from BBB- at Crisil
  • Cites advanced stage of construction of most projects, healthy booking

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(Bloomberg) -- UBS Asset Management expects a mini cyclical slowdown because government’s tighter policies will slow both property market and infrastructure spending as well as reduce liquidity, Hayden Briscoe, head of Asia Pacific fixed income, says in a phone interview on Thursday.

• Sees economic growth and inflation slowing toward late 2017 and in 2018
• While over long term, current bond yields are attractive for entry, yields typically rise near quarter-end
  • UBS Asset would have “very high conviction” to buy bonds if 10-year government bond yields rises to 3.8-4%
  • With yields in range of 3.65-4%, UBS Asset recommends adding duration 
• Xi Jinping’s consolidation of power will give him more room to focus on reforms, leading to slower growth and capital appreciation in bonds
  • China may announce removal of growth target at upcoming 19th Party Congress
  • Over longer term Briscoe recommends buying government and policy bonds with view to add duration and staying away from LGFV bonds
• Sees yuan rising to 6.5 vs USD at year-end as more companies and investors unwind dollar positions
  • UBS Asset’s yuan funds have been seeing “first trickle of money coming back” beginning with corporate cash
• Watching to see if LGFV issues will cascade into a rise in defaults
• Within China credit, UBS Asset likes short-dated bank paper and strategically important SOEs
• NOTE: China’s 10-year govt bond yield has jumped 61bps this year to 3.67% on Thursday; onshore yuan has gained 5.5% to 6.5850 vs USD

To contact the reporter on this story: Justina Lee in Hong Kong at jlee1489@bloomberg.net To contact the editors responsible for this story: Richard Frost at rfrost4@bloomberg.net Philip Glamann

(Bloomberg) -- HSBC and Bocom cut shares to hold, becoming only two brokerages of 16 tracked by Bloomberg not to have a buy rating or equivalent on Kerry.

• Forwarding margins to remain under pressure due to consolidation in the shipping sector, HSBC analysts including Parash Jain write in note
• “Sharp decline” in Chiwan Container Terminal income weighed on first-half earnings
• PT cut 4.8% to HK$12 from HK$12.60
• Contribution from associates sank 52% on year, dragging down results, Bocom International analysts Fay Zhou and Geoffrey Cheng write in note dated Friday
• Kerry ends run of all-buy ratings that began in March, according to data compiled by Bloomberg
• NOTE: Kerry’s 1H net income rose 11% to HK$788m

--With assistance from Amanda Wang. To contact Bloomberg News staff for this story: Ryan Lovdahl in Shanghai at rlovdahl@bloomberg.net To contact the editors responsible for this story: Richard Frost at rfrost4@bloomberg.net Ryan Lovdahl, Will Davies