Asian sovereign ratings safe despite deposit guarantees
Moody's says the fiscal positions of major regional countries are secure even as they raise their level of contingent liabilities.
ôLarger deposit guarantees do not affect sovereign ratings in Asia,ö says Aninda Mitra, a vice-president at MoodyÆs Investors Service, who published a report last week on the major regional banking systems and the effects of government guarantees on the fiscal positions of Asian countries.
ôThe decisions by authorities in Hong Kong, Singapore, Malaysia and Taiwan to extend bank deposit guarantees were precautionary in nature, and should reassure depositors. It is better to do it this way, rather than have to...
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