trending Market Intelligence /marketintelligence/en/news-insights/trending/xewjxljjaholjjx0yhh2ew2 content
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

S&P: Rising trade war risks threaten stable Asia-Pacific credit conditions

StreetTalk – Episode 69: Banks left with pockets full of cash and few places to go

Street Talk – Episode 69: Banks left with pockets full of cash and few places to go

Infrastructure Issues: Tools to Dig Deep on Potential Risks

Street Talk Episode 68 - As many investors zig away from bank stocks, 2 vets in the space zag toward them


S&P: Rising trade war risks threaten stable Asia-Pacific credit conditions

S&P Global Ratings said March 28 that an escalating trade dispute between the U.S. and China could "upset" the Asia-Pacific region's otherwise stable credit conditions and continued economic growth.

"Fears of a China-U.S. trade war cloud positive momentum in the Asia-Pacific's macroeconomic outlook, financial conditions and sector trends," warned S&P Global Ratings credit analyst Terry Chan. "The top macro risk for Asia-Pacific is trade-related."

S&P raised the risk level of trade interruption and geopolitical tensions to "high" from "elevated" after U.S. President Donald Trump's recent spate of China-specific trade penalties. But the rating agency does not expect U.S. tariffs of up to $60 billion on Chinese imports to have a large impact on its rated companies, citing a preliminary impact analysis that assumes tariffs of up to 25% on designated sectors.

While Beijing's response to the U.S. trade actions has been moderate so far, the risk of escalation is rising and a trade war involving China could affect Asia-Pacific business activity and growth, S&P cautioned. The threat of a trade war has kept geopolitical fears high despite slight improvements in Asia-Pacific's macroeconomic outlook, financing conditions and rating trends over the past quarter, said Chan.

S&P expects monetary policy settings in the region to stay accommodative while corporate financing conditions will remain favorable entering the second quarter of 2018 despite relatively tighter credit standards in emerging Asia. More than $200 billion worth of Asia-Pacific debt is expected to mature in 2018, the rating agency said.

Aside from trade-related risks, S&P said Asia-Pacific also remains vulnerable to asset-price volatility and capital outflows in the second quarter. Other key risks include a possible liquidity pullback and the China debt overhang, which the rating agency considered "elevated but manageable in the short term."

Meanwhile, sustained regional economic growth and improved commodity prices have eased the negative rating pressure on the Asia-Pacific issuer pool in recent months, S&P added.

This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings. The original S&P Global Ratings documents referred to in this news brief can be found here.