• About
  • Subscribe
  • Contact
Thursday, March 30, 2023
    Login
FutureCFO
  • Business Insights
    • Competencies and Capabilities
    • Digital Transformation
    • Leadership and Roles
    • Mergers and Acquisitions
    • Risk and Regulation
    • Strategies and Tactics
  • Operations
    • Audit and Compliance
    • Finance Accounting and Reporting
    • Operational Accounting and Control
    • Tax Management and Optimization
    • Treasury and Cash Management
  • Technology
    • Artificial Intelligence
    • Automation
    • Big Data
    • Blockchain
    • Business Applications
    • Cloud, Platforms and Ecosystems
    • Future Technology
  • Resources
    • Whitepapers
    • PodChats
    • Videos
  • Events
  • Awards
  • Knowledge Hub
    • Sustainable Finance
No Result
View All Result
  • Business Insights
    • Competencies and Capabilities
    • Digital Transformation
    • Leadership and Roles
    • Mergers and Acquisitions
    • Risk and Regulation
    • Strategies and Tactics
  • Operations
    • Audit and Compliance
    • Finance Accounting and Reporting
    • Operational Accounting and Control
    • Tax Management and Optimization
    • Treasury and Cash Management
  • Technology
    • Artificial Intelligence
    • Automation
    • Big Data
    • Blockchain
    • Business Applications
    • Cloud, Platforms and Ecosystems
    • Future Technology
  • Resources
    • Whitepapers
    • PodChats
    • Videos
  • Events
  • Awards
  • Knowledge Hub
    • Sustainable Finance
No Result
View All Result
FutureCFO
No Result
View All Result
Home Operations

Most high-yield firms in this region can manage USD debt exposure

FutureCFO Editors by FutureCFO Editors
July 1, 2019
money

Photo by 3quarks on iStock

Moody's Investors Service says in a recently released report that all but five of the 47 rated South and Southeast Asian high-yield companies have protections in place against a significant rise in leverage, or a contraction in EBITDA, should their local currencies depreciate up to 20% against the US dollar. 

Natural hedges limit the risk of unfavorable currency movements against the US dollar for 29 companies, accounting for 58% of portfolio's outstanding USD debt, Moody’s pointed out.

Ten companies have sufficient protections or limited US dollar debt, while a further seven generate a meaningful portion of their revenue in US dollars, have financial hedges in place, some US dollar cash, or a combination of these factors, the rating agency added. 

Three of the 47 companies have less than 10% of US dollar debt exposure, such that additional mitigants are unnecessary, the firm noted. 

Significant currency mismatches occur for Indonesia’s MNC Investama Tbk (B3 negative) and Gajah Tunggal Tbk (P.T.) (B2 negative), and Bangladesh’s Banglalink Digital Communications Limited (Ba3 stable) because more than 65% of their debt is in US dollars but they generate all, or a majority of, their cash flow in local currency, Moody’s warned. 

Despite the use of financial hedges to protect most of their principal, Indonesian property companies Lippo Karawaci Tbk (P.T.) (B3 stable) and PT Alam Sutera Realty Tbk (B2 negative) are also more at risk of leverage rising should the IDR depreciate above IDR15,000, the firm added. 

The 47 rated companies had around $112.1 billion of debt outstanding at the end of 2018, $56.5 billion of which was denominated in US dollars, according to Moody’s.

Related:  Moody’s: China’s shadow banking sector continues to dim
Tags: Moody'sUSD debt exposure
FutureCFO Editors

FutureCFO Editors

No Result
View All Result

Recent Posts

  • Asia Pacific private equity deal value down 44% in 2022
  • Investment planning: Sustainability metrics to be CFO’s standard practice by 2026
  • Rein in rogue spending by automating accounts payable
  • Is your people strategy human enough?
  • Security budgets rise more than in 2022 despite economic headwinds

Live Poll

Categories

  • Artificial Intelligence
  • Audit and Compliance
  • Automation
  • Big Data
  • Blockchain
  • Business Applications
  • Business Insights
  • Case Studies
  • Cloud, Platforms and Ecosystems
  • Competencies and Capabilities
  • Digital Transformation
  • eBooks and eBriefs
  • Finance Accounting and Reporting
  • Future Technology
  • General
  • Infographics
  • Leadership and Roles
  • Mergers and Acquisitions
  • Operational Accounting and Control
  • Operations
  • Polls and Surveys
  • Resources
  • Risk and Regulation
  • Strategies and Tactics
  • Tax Management and Optimization
  • Technology
  • Treasury and Cash Management
  • Videos/Tutorials
  • Webcasts/Podcasts
  • White Papers

Strategic Insights for Finance Executives

FutureCFO.net is about empowering the CFO and the Finance Team to take on the leadership position in the digitalization of the enterprise. It's more than just a portal for the exchange of industry best practices, it is about creating and growing a community of finance professionals able to share learned experiences, providing a platform for the current and next generation of finance leaders and professionals.

Quick Links

  • Videos
  • Resources
  • Subscribe
  • Contact

Cxociety Media Brands

  • FutureIoT
  • FutureCFO
  • FutureCIO
  • Privacy Policy
  • Terms of Use
  • Cookie Policy

Copyright © 2022 Cxociety Pte Ltd | Designed by Pixl

No Result
View All Result
  • Business Insights
    • Competencies and Capabilities
    • Digital Transformation
    • Leadership and Roles
    • Mergers and Acquisitions
    • Risk and Regulation
    • Strategies and Tactics
  • Operations
    • Audit and Compliance
    • Finance Accounting and Reporting
    • Operational Accounting and Control
    • Tax Management and Optimization
    • Treasury and Cash Management
  • Technology
    • Artificial Intelligence
    • Automation
    • Big Data
    • Blockchain
    • Business Applications
    • Cloud, Platforms and Ecosystems
    • Future Technology
  • Resources
    • Whitepapers
    • PodChats
    • Videos
  • Events
  • Awards
  • Knowledge Hub
    • Sustainable Finance
Login

Copyright © 2022 Cxociety Pte Ltd | Designed by Pixl

Login to your account below

or

Not a member yet? Register here

Forgotten Password?

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In