Halister News

--SHAJI MATHEW

(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

DOWNGRADE

• Gwalior Bypass Project
  • NCDs cut to D from BB(SO) at Care
  • Cites non-payment of interest and principal

UPGRADE

• Tata Marcopolo
  • Fund-based working capital bank facility raised to A+ from A at India Ratings
  • Cites substantial improvement in profitability

(Bloomberg) -- Sees high participation of Asia investors in the region’s credit market, which remains a bright spot, Neeraj Seth, head of Asia credit at BlackRock, says at a press briefing in Hong Kong on Monday.

• BlackRock is overweighting Chinese IG credits, including TMT, SOEs, due to a gradual slowdown in growth, deleveraging and SOE reform agenda; prefers IG over HY for China names
• In India is overweighting IG and HY credit because of improving growth outlook and strong reform momentum, also likes local-currency bonds there
• Positive on Sri Lanka, Mongolia
• More neutral on Indonesian credits
  • Indonesian dollar bonds have priced in a lot of future improvement, more positive on local currency than dollar notes

(Bloomberg) -- Rupiah firmer along with most Southeast Asian peers after the latest jobs data offered mixed signals on the strength of the U.S. labor market.

• USD/IDR slips 0.1% to 13,288; 200-DMA support 13,273
• Morgan Stanley says it favors Indonesia’s local bonds because of their relatively high real yield in the region and the improvement in the nation’s fundamentals; says supply for 2017 also seems benign
  • However, the bank remains cautious on rising market uncertainties from China and the U.S., as Indonesian bonds and rupiah tend to underperform in periods of increasing volatility, analysts led by Andrew Sheets wrote in global mid-year outlook report dated June 4
• Yield on 7% govt bond due May 2027 little changed Friday at 6.96%
• Global investors bought a net 4.6t rupiah of Indonesian bonds in the first three days of last week, according to latest finance ministry data
• Finance Minister Sri Mulyani Indrawati expected to submit revision of 2017 state budget to parliament
• Indonesian coffee exports surge as farmers boost supply for cash for Ramadan and Eid al-Fitr
• READ: Options Turn Positive on Asian Currencies as Dollar Bets Trimmed

To contact the reporter on this story: Netty Ismail in Singapore at nismail3@bloomberg.net To contact the editors responsible for this story: Tan Hwee Ann at hatan@bloomberg.net Cormac Mullen

(Bloomberg) -- Market expectations for a major dividend hike in year ending March 2018 appear to have helped fuel 22% increase in share price over six months, and valuations are high, analysts led by Hiroyuki Sakaida write in report dated June 2.

• Cuts to sell from neutral, lowers PT to 2,950 yen from 3,000 yen
• Expect Toyota Tsusho to underperform rest of Goldman’s trading co. coverage
• Shares sink as much as 4.4%, most since April 13
• 5 holds, 2 sells; avg PT 3,222 yen: Bloomberg data

To contact the reporter on this story: Yuko Takeo in Tokyo at ytakeo2@bloomberg.net To contact the editors responsible for this story: Vivek Shankar at vshankar3@bloomberg.net Jonathan Annells