Moody’s publishes a Credit Trends Report on J.P. Morgan Asia Credit Index

Hong Kong, July 07, 2011 -- Moody's Investors Service today published a 
report examining credit trends and rating movements for issuers -- most 
of which are rated by Moody's -- in the J.P. Morgan Asia Credit Index 
(JACI).

"For the most recent data, the two main takeaways are that stability 
still dominates ratings, but ratings movements at the margin will likely 
be negative," says Laura Acres, a Moody's Vice President and Senior 
Credit Officer.

This report reflects Moody's views and was not done in collaboration with 
J.P. Morgan.

For the latest JACI, market weightings are as of May 13, 2011 and ratings 
are as of June 15, 2011.

"Currently, outlooks for the ratings of 81% of the companies in the index 
are stable. This percentage increased substantially in June, following 
Moody's upgrade of the Philippine government's debt rating to Ba2 and the 
accompanying change in the rating outlook to stable from positive," says 
Acres.

"The Philippines is the largest individual issuer in the index, so the 
change to a stable outlook also changes the mix of positive/negative
outlooks," says Acres.

"At the margin, as indicated, a negative bias now underlies the rating 
outlooks of issuers in the region, with some 12% of index components 
having a negative outlook and another 3% with ratings under review for 
downgrade," says Acres.

"And about 4% of issuers in the index have a positive outlook, although 
these are largely tied to issuer-specific reasons rather than to wider 
sovereign movements," says Acres.

According to the report, issuers with negative outlooks are concentrated
in three areas: China-based corporates; Hong Kong-based corporates 
(given the relatively heavy weighting of Hutchison Whampoa); and certain 
Korean banks and financial institutions, including the Korea Development 
Bank.

Moody's rates 96% of the JACI's components, of which rated 
investment-grade names represent 61%, and non-investment-grade companies 
35%. The average weighted rating for the entire index is Baa1.

The JACI tracks the total return performance of select Asia bonds 
denominated in US dollars and is a market-capitalization weighted index 
covering 15 Asian markets (excluding Japan and Australia).

It includes some 392 bonds and 204 issuers with a total weighted market
capitalization of US$269 billion.

The report is entitled, Credit Trends for Asian Corporate and Sovereign
Issuers. It can be found at www.moodys.com