Strong economic growth and the large liquidity pool have so far been able to uphold the generally positive credit fundamentals in Asia, even as the subprime-triggered credit turmoil has wreaked havoc in the rest of the world. But in a new report, MoodyÆs Investors Service warns that signs of a possible disruption to the relative stability of Asian corporates have started to emerge in the fourth quarter.
ôHeading into 2008, the positive effects of the regionÆs robust economic performance could be dampened if tight liquidity drives interest costs higher, or if rising raw material costs continue to squeeze margins,ö the ratings agency says.
The warning signs include a sharp increase in the number of Asian...
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