S&P sees bleak credit outlook for Asia-Pacific next year

MUMBAI: The ongoing sovereign debt crisis in the Eurozone area, coupled with weak growth in the US will moderate credit outlook in the Asia-Pacific region in 2012, says a study by Standard and Poor’s rating services.

“Mounting challenges across the globe could severely test the resilience of sovereigns in Asia-Pacific. The uncertainty over the sovereign debts and banking sector stability in the Eurozone is by far the biggest of these challenges,” the S&P report said here today.

Titled ‘A slowdown in Europe & China, and sluggish exports moderate Asia-Pacific credit outlook in 2012’ the report said the credit outlook in 2012 for the corporate sector in the region is generally stable with patches of weakness.

It also pointed out economic growth fundamentals and government fiscal positions in Asia-Pacific region are generally sound.