The drop in China’s exports caused by Europe’s debt crisis may affect whether Moody’s Investors Service raises the nation’s sovereign debt rating, said Tom Byrne, a senior vice president at the company.
South Korea’s economic fundamentals are “very sound,” with their strength coming from foreign- exchange reserves, Moody’s Investors Service Senior Vice- President Tom Byrne said. Asian bonds are regarded as a “safe haven” for global investors because of their fiscal strength, Byrne said at a conference in Seoul today.
Japan may “at some point” reach a fiscal “tipping point” if investors lose confidence in the soundness of government finances and demand a risk premium on the nation’s bonds, Moody’s Investors Service said.
China’s local governments are seeking global investors to cut costs on 17.9 trillion yuan ($2.9 trillion) in debt as the property market weakens, yields surge and economic growth cools to the slowest in 24 years.
China’s local-government financing vehicles won’t create a “severe” problem based on initial analysis by Moody’s Investors Service, said Tom Byrne, a senior vice president of the rating company’s sovereign risk unit.