Home / Knowledge / News / Textiles / Asian firms to see steady earnings growth in 2018: Moody's
Asian firms to see steady earnings growth in 2018: Moody's
Nov '17
Steady economic expansion and corporate earnings growth will underpin the stability of credit quality for corporations in Asia, except Japan, in 2018, while refinancing requirements will also be manageable, Moody's Investors Service said. Moody's has stable outlooks for steel, refining and marketing, telecom and power sectors in Asia and China property.

The gradual normalization of monetary policy will support the near-term liquidity needs of corporations in the region, said Chris Park, Moody's associate managing director citing the company’s recent report ‘Non-financial corporates -- Asia (ex-Japan), 2018 Outlook’.

Chinese corporations will witness a GDP growth of 6.6 per cent and operating-efficiency gains and stable commodity prices will support moderate revenue and cash flow growth. Credit profile improvements will continue in Indian corporations on healthy earnings growth, underpinned by solid economic growth and increased production capacity.

About 88 per cent of investment-grade companies and 68 per cent of non-investment grade companies had stable outlooks at end-October 2017, up from 63 per cent and 55 per cent respectively a year ago, according to a press release from Moody’s.

Moody's expects that G-20 growth will be slightly above 3 per cent in 2017 and 2018, up from 2.5 per cent in 2016, while China's GDP growth will slowly decelerate in 2018 as less policy stimulus is provided, said Park.

The number of negative rating actions in Asia will also decline on these healthy macro conditions and stable liquidity.

"However, a potential protectionist turn in US trade policy could pose risk to trade-reliant economies," says Park.

Further downside risks include military confrontation on the Korean Peninsula, causing the loss of production in Korea and disruptions in the region's supply chains; and a significant deceleration in China's growth because of ineffective reform measures and the knock-on effects for Asian corporations.

On the other hand, upside risks include China's growth accelerating on major stimulus programs, boosting regional economic growth and corporate earnings; and stronger-than-expected growth in the United States and the European Union, together with limited disruption from US interest rate normalization, leading to increased exports and earnings for Asian corporations. (DS)

Fibre2Fashion News Desk – India

Must ReadView All

Azerbaijan's Gilan Textile Park raises exports by 40%

Apparel/Garments | On 18th Aug 2018

Azerbaijan's Gilan Textile Park raises exports by 40%

Azerbaijan's Gilan Textile Park has raised its exports by 40 per cent ...

CPD studies living cost of Bangladesh RMG workers

Apparel/Garments | On 18th Aug 2018

CPD studies living cost of Bangladesh RMG workers

The living cost of readymade garment (RMG) workers in Bangladesh...

Brazilian cotton price index returns to April 2018 level

Textiles | On 18th Aug 2018

Brazilian cotton price index returns to April 2018 level

Cotton prices dropped in Brazil in the first fortnight of August as...

Interviews View All

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Smarth Bansal
Colorjet India Limited

We would like to venture more companies into the Indian market

Deepprakash Agrawal

Radhey Weaves is a Surat-based manufacturer of brocade fabrics. MD...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Ramez Basmaji

Fabusse is a Lebanon-based fashion agency that offers a variety of...

Dr. Rene Wollert
Freudenberg Nonwovens

Dr. Rene Wollert discusses the current scenario of the global nonwovens...

Robin Grankvist
OrganoClick AB

Robin Grankvist talks about PFCs, additives and various chemicals used in...

Mr Hartmann Huth
Trevira GmbH

Trevira GmbH is an innovative European manufacturer of high-value branded...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Adriano Goldschmied
AG Jeans

The hype around 'designer jeans' was created by him. And the new wave of...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

August 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category

Related Categories:

Advanced Search