Asia Roundup
China Targets Inflated AAA Bond Ratings in Sweeping Cleanup
A sweeping regulatory crackdown on credit rating inflation in Chinaās bond market has triggered a wave of downgrades and rating terminations, with authorities zeroing in on unjustified AAA grades, Caixin reported, citing sources familiar with the matter.
The campaign, which intensified last month, pressures domestic rating agencies to enforce stricter evaluation standards.
Japan Payment Processor Collapse Hits Banks, Restaurants
The bankruptcy of Zentoshin, an Osaka-based credit card payment processor, threatens both the regional banks which funded it as well as the small and medium-sized restaurants that relied on its services, Bloomberg reported.
Zentoshin filed for bankruptcy with the Osaka District Court on 6 July, according to Teikoku Databank, Japanās largest private corporate credit research firm. The company had total liabilities of approximately Ā„115.2 billion ($710 million), at the time of the filing, making it Japanās largest corporate bankruptcy of the year.
Five listed regional banks and banking groups, including Towa Bank and San ju San Financial Group, have said they will take writedowns because of the failure.
Uzbekistanās AKFA Picks Citi, JPM to Sound Out Bond Investors
AKFA Aluminium Group, one of Uzbekistanās largest private companies, is set to meet international investors next week as it explores issuing its first ever bond, Bloomberg reported, citing people familiar with the matter.
The producer of aluminum and plastic products has selected Citigroup and JPMorgan Chase & Co to organize a two-day roadshow starting in London on 13 July.
Indonesia Roundup
S&P Dow Jones Puts Indonesia on Watch List for Market Downgrade
Global index provider S&P Dow Jones Indices warned Indonesia risks a downgrade to frontier from emerging status over market transparency issues, echoing a similar caution from rival MSCI in the latest setback to Southeast Asiaās biggest economy, Reuters reported via The Business Times.
Danantara Seals Creation of Indonesiaās Biggest Asset Manager
Indonesiaās sovereign wealth fund Danantara has finalized the merger of four local firms to create the nationās largest asset manager as it seeks to compete more effectively with financial institutions across the region, Bloomberg reported.
The asset management units of Bank Rakyat Indonesia, Bank Negara Indonesia, Bank Mandiri and Permodalan Nasional Madani have been rolled into one company under Mandiri Manajemen Investasi, according to a statement from the State-Owned Enterprises Agency.
Acrostics Asia is an independent credit intelligence provider that connects the dots across Asian sovereigns, private credit and restructurings.