HALISTER1: Asian Currencies at Risk of Slowing Inflows in 2H, UBS Says

Asian Currencies at Risk of Slowing Inflows in 2H, UBS Says

(Bloomberg) -- Most Asian currencies are vulnerable to a slowdown or reversal of inflows as equity flows remain weak in the second half on softer exports and subdued growth outlook, UBS strategist Rohit Arora writes in note.
  • EM Asia recorded $64b of portfolio inflows in 1H, a record for the period, driven by strong growth momentum and easing of U.S. trade protectionism concerns
    • Of this, $33b consisted of debt flows while the rest were equity funds
    • India and South Korea accounted for about 70% of inflows
    • Malaysia was an exception in recording outflows due to NDF market regulations; bulk of outflows occurred in 1Q
  • Remains optimistic on India, Indonesia and Thailand debt where real yields are attractive from a global EM perspective
  • PHP, IDR and INR more likely to face most fundamental pressure if flows swing into a negative territory as the three countries’ basic balances are close to zero
  • KRW likely to benefit most from sustained flows amidst stable global financial conditions as South Korean stocks are at cheaper end of valuations spectrum
To contact the reporter on this story: Liau Y-Sing in Kuala Lumpur at yliau@bloomberg.net To contact the editors responsible for this story: Tan Hwee Ann at hatan@bloomberg.net Patricia Lui

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Rohit Arora (UBS Asset Management Japan Ltd)

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HALISTER: U.K. Banking System Outlook to Stable From Negative at Moody’s

U.K. Banking System Outlook to Stable From Negative at Moody’s

(Bloomberg) -- Moody’s Investors Service raises outlook on the U.K. banking system to stable from negative, says banks’ stronger credit profiles have increased their resilience to weakening operating conditions.
  • Ratings agency still expects operating environment to deteriorate given heightened uncertainty prior to the U.K. leaving the EU, but says banks better placed to withstand tougher conditions
    • Expects U.K. economy to slow, impacting banks’ revenue and credit quality
  • U.K. banks will remain healthy due to improved capital positions, strong loan quality and robust liquidity and funding positions
    • Banks have maintained good access to wholesale markets in the aftermath of last year’s EU referendum, Moody’s expects this to continue over the 12-18 months outlook period
To contact the reporter on this story: Adveith Nair in London at anair29@bloomberg.net

Alert: HALISTER
Source: BFW (Bloomberg First Word)

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SAN SM (Banco Santander SA)
LLOY LN (Lloyds Banking Group PLC)
VQT US (Barclays ETN+ ETNs Linked to the S&P 500 Dynamic VEQTORTM TotaL Return Index)
FLEU US (Barclays ETN+ FI Enhanced Europe 50 ETN Series B)
BXUB US (Barclays ETN+long B Leveraged ETN Linked to S&P 500)

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HALISTER1: *U.K. BANKING SYSTEM OUTLOOK TO STABLE FROM NEGATIVE AT MOODY'S

*U.K. BANKING SYSTEM OUTLOOK TO STABLE FROM NEGATIVE AT MOODY'S

Alert: HALISTER1
Source: BN (Bloomberg News)

Tickers
SAN SM (Banco Santander SA)
LLOY LN (Lloyds Banking Group PLC)
VQT US (Barclays ETN+ ETNs Linked to the S&P 500 Dynamic VEQTORTM TotaL Return Index)
FLEU US (Barclays ETN+ FI Enhanced Europe 50 ETN Series B)
BXUB US (Barclays ETN+long B Leveraged ETN Linked to S&P 500)

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Credit Research
Issuer Focused Research

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UUID: 7947283

HALISTER1: INDIA RATINGS: Rashtriya Ispat Cut; NED Energy Raised

INDIA RATINGS: Rashtriya Ispat Cut; NED Energy Raised

(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
  • Autoline Industries
    • Long-term bank facilities cut to D from B- at Care
    • Cites ongoing delays in debt servicing
  • Rashtriya Ispat Nigam
    • Fund-based working capital limits cut to A- from A at India Ratings
    • Cites credit profile to remain stretched due to continued Ebitda losses
  • Sakthi Ferro
    • LT bank facilities cut to BB+ from BBB- at Crisil
    • Cites high reliance on debt for meeting working capital requirement
  • Vasavi Solar Power
    • LT bank facilities cut to D from BB at Care
    • Cites delay in repayment of its debt obligations
UPGRADES
  • Coffee Day Global
    • Term loan raised to AA- from A+ at Care
    • Cites healthy cash generation
  • Genesis Finance
    • LT bank facilities raised to BB from D at Crisil
    • Cites company has been servicing its debt during the past six months
  • NED Energy
    • LT bank facilities raised to BBB from BBB- at Crisil
    • Cites enhanced support from parent Time Technoplast
  • Shyam Indofab
    • LT bank facilities raised to BB from BB- at Crisil
    • Cites ramp-up of operations

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
AUTOL IN (Autoline Industries Ltd)
886548Z IN (Coffee Day Global Ltd)
RINL IN (Rashtriya Ispat Nigam Ltd)
6598884Z IN (Sakthi Ferro Alloys Pte Ltd)
TIME IN (Time Technoplast Ltd)

Topics
First Word Credit Asia

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