Most rated non-financial companies in Asia (excluding Japan) should be able to address their bond maturities through 2022 as of the end of 2017, according to Moody’s Investors Service, which puts the total for these bonds at about $850 billion, with a peak of around $209 billion in 2020.
While most of the bonds are up for maturity in China, in India, over $1 billion worth of bonds are up for maturity in 2018. Bonds worth $736 million offered by Vedanta Resources, $150 million offered by Indiabulls Real Estate, $124 million issued by Tata Motors and $119 million issued by JSW Steel are due for maturity this year.
The 10 largest issuers account for about 31% of the $850 billion.
"We believe most companies will be able to address these maturities, given the level of investor appetite for bonds, as indicated by issuance averaging about $250 billion per year for the past three years," said Wan Hee Yoo, Moody’s Vice President and Senior Credit Officer.
Majority of Moody’s industry sector outlooks and rating outlooks for the issuers are stable or positive, reflecting expectations of generally steady or favorable business conditions over the next 12-18 months.
Based on Moody's estimates, the 10 largest bond issuers account for about 31% of maturities expected over the next five years, and nine are investment-grade, government-related issuers, and therefore have strong access to the bank and capital markets.
