All positive for Asia’s 40 largest banks

92.5% of the largest banks in Asia Pacific have stable outlooks despite the global financial crisis.

And not a single institution has a negative outlook, says Standard & Poor’s industry report.

Here’s more from S&P:

Asia-Pacific's major banks generally demonstrated resilience during the global financial crisis, with the sector performing satisfactorily overall.

“Looking at 40 of the largest banks in Asia Pacific, spanning 10 of the region’s major markets, currently 37 or 92.5% have stable outlooks, three or 7.5% have positive outlooks, and not a single institution has a negative outlook,” says credit analyst Gavin Gunning, of the Financial Services Ratings group. “Standard & Poor’s currently has counterparty credit ratings on 256 financial institutions in the Asia-Pacific region, including 40 of the largest banks, with 82.8% on stable outlook, 12.5% on negative outlook or CreditWatch with negative implications, and 4.7% on positive outlook or CreditWatch with positive implications.”

“Overall, the sector has recovered satisfactorily, in our view,” says credit analyst Ryan Tsang, of the Financial Services Ratings group. “That said, the balance remains delicately-poised for some of Asia-Pacific’s major banks in terms of defending credit standings at the current rating levels. Property-market sensitivities are a common theme that could negatively impact the major banks’ credit quality, and inflation remains a key concern in some markets.”

"Furthermore, global debt markets remain skittish, in particular in relation to the emergence of recent European stresses, with increased market volatility also having the potential to negatively impact Asia Pacific’s major banks," Mr. Gunning added.

The Asia-Pacific region comprises a pot-pourri of diverse risks among its major banks, from the highly-rated, developed major-bank sectors in Australia, Hong Kong, and Singapore, to the lower-rated but still investment-grade--and rapidly-developing--major banking sectors of the world’s two most populous nations, China and India, to the increasingly challenged Japanese sector, with six major banks domiciled in the world’s third-largest economy.  

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