Oil/gas, metals/mining, real estate, financing, retail at higher credit risk in 2016 – S&P

HONG KONG - The 2016 credit outlook for Asia-Pacific is somewhat negative with borrower refinancing and new financing risks high on Asia-Pacific investors' agendas, according to Standard & Poor’s Head of Research for Asia-Pacific, Terry Chan. "Credit risks have risen and some risk hotspots remain as we enter 2016,” he says.

We've earmarked the oil and gas, metals and mining, real estate development, financial institutions, and retail sectors as having the highest risks of rating downgrades in 2016."

S&P’s 2016 Credit Outlook publication also includes the results of its investor poll of the top five macro-credit concerns for 2016.

"Apart from risks related to China's economic slowdown and tighter market
liquidity, investors remain nervous about prospects of ongoing falls in
commodity prices and rising defaults," says Chan.

The ratings agency is forecasting relatively sluggish economic growth for the Asia-Pacific region, including slower growth in China.

The baseline scenario is for Asia-Pacific GDP growth of 5.3% for 2016; and for 6.8% growth in China in 2016. For emerging Asia, growth is forecast to slide to 6% in both 2016 and 2017. www.standardandpoors.com (ATI).