US$1 trillion of rated Asia-Pacific Corporate debt expected to mature through 2021: S&P

SINGAPORE - About 10.5% of the US$10.3 trillion in corporate debt maturing globally from the second half of 2016 through 2021 is from the Asia-Pacific region, according to ratings agency Standard & Poor’s. Of the total, US$107.2 billion is scheduled to mature in the second half of 2016, peaking at US$237 billion in 2017 before annual maturities decline.

The S&P Global Fixed Income Research group says the median maturity for all Asia-Pacific rated corporate debt is 3.9 years, and of total Asia-Pacific debt maturing through 2021, 88% is investment-grade (rated 'BBB-' and higher).

"Amid ongoing volatility and uncertainty in global credit, equity, and commodity markets, companies may face episodes of challenging credit conditions when they seek to refinance," said Diane Vazza, Head of the S&P Global Fixed Income Research group.

"Though the macro-economic picture is becoming more balanced for several countries in the region, global trade growth remains sluggish as China embarks on an unsustainable round of credit-fuelled growth."
 S&P expects that financial markets will provide sufficient liquidity for companies to manage the amount of rated corporate debt set to mature in Asia-Pacific. However, volatility in capital flows, exchange rates, and the ongoing rebalancing of China's economy could impose additional funding challenges. www.standardandpoors.com (ATI).