Asian Liquidity Stress Indicator Improves Again in January

Moody's Investors Service's Asian Liquidity Stress Indicator (Asian LSI) improved for the third consecutive month to 24.7% in January—its lowest level since July 2015—from 26.2% in December 2017. The Asian LSI measures the percentage of high-yield companies with Moody's weakest speculative-grade liquidity score of SGL-4 as a proportion of high-yiel...
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Companies Could Spend Accumulated Cash Soon, Survey Finds

If all goes well, U.S. businesses may be set to deploy some of their cash piles on capital expenditures, wage increases, dividends and buyback and mergers and acquisitions, according to a recent report from the Association for Financial Professionals (AFP). The organization saw companies accumulating cash and short-term investment holdings at a les...
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Liquidity-Stress Indicator Remains Low, Despite Rising in January

Despite economic growth and healthy credit markets in the U.S., the January 2018 results from Moody's Investors Service's Liquidity-Stress Indicator (LSI) show a potentially weakened corporate liquidity after increasing for the first time in a year. The indicator, which generally falls when corporate liquidity improves and rises when it weakens, re...
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As U.S. Hotel Market Peaks, Loan Transfers to Special Services Increases

After four years of warning signs that pointed to a peaking U.S. hotel market, Fitch Ratings' prediction is coming to fruition as more hotel properties in the country's top metropolitan markets transfer loans to special services in the midst of facing pressures from oversupply. An increasing number of hotel properties transferred to special servici...
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China’s Debt-for-Equity Swap Framework Provides Companies Time, Turnaround Plans Still Needed

China's debt-for-equity swap framework provides near-term liquidity relief to Chinese corporates that need it, offering much-needed time to restore their business and credit profiles. Still, these debt-for-equity swaps need to be combined with well-planned and closely monitored turnaround plans to allow companies to improve cash flow and recapitali...
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U.K. Insolvency Levels Hit Four-Year High in 2017, Credit Insurance Should Be Considered

Insolvency numbers in the United Kingdom (U.K.) were recorded just shy of 17,250 in 2017, reaching the highest levels in the past four years. According to the Association of British Insurers (ABI), this 4.2% rise from 2016 should make trade credit insurance that much more appealing to businesses, insurers and brokers. In an Insurance Times article ...
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Indian Demonetization Highlighted a Significant Liquidity Risk

Moody's Investors Service recently looked into the types of transactions by country that pose the greatest liquidity risk. Their findings? Indian structure finance transactions, particularly as highlighted during the demonetization process. "This higher liquidity risk occurs because most Indian transactions pay both interest and principal to invest...
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Less than Half of Businesses Aware of GDPR as Deadline Closes In

Less than four months before the General Data Protection Regulation (GDPR) takes effect in the U.K., a recent government survey indicates that only 38% of businesses are aware of the upcoming data protection laws. GDPR will commence on May 25 and, according to ZDNet, "those who are found to misuse, exploit, lose, or otherwise mishandle personal dat...
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