In a statement yesterday, it said currently, the countries in its Asian sovereign portfolio had a stable outlook, with the exception of India, which carried a positive outlook.
“However, downside risks remain, as Asia’s dependence on trade with and investments from China renders the latter a significant contagion credit risk for the region,” said Head of Sovereign Ratings, Esther Lai in conjunction with the publication of RAM’s Asia Sovereign Focus 2017.
RAM’s Asia Sovereign Focus 2017 is a point of reference for credit views on Asean members, China, India, Japan and South Korea.
Lai said infrastructure spending – the heart of the reform plans for Indonesia, the Philippines and Thailand – had been gaining traction, with continuous efforts to improve business conditions in the interest of long-term economic sustainability.
Elsewhere, the frontier economies of Cambodia, Laos and Myanmar are still addressing constraints in physical infrastructure and human capital development, with the support of multilateral and bilateral funding, although they remain highly susceptible to external shocks.
“We are also keeping an eye on growing US trade protectionism, rising geopolitical risks and security threats, as well as the risk of capital outflows that will inflate financing costs,” Lai said. — Bernama
Source: Borneo Post Online