Asian companies slightly more ‘liquid’: Moody’s

The Asian LSI measures the percentage of high-yield (higher risk) companies with SGL-4 scores as a proportion of high-yield corporate family ratings (CFRs) and decreases when speculative-grade liquidity improves. An SGL-4 rating is the least liquid, meaning that the company may not be able to meet its short-term liabilities.
“The reading remained above the long-term average of 23 per cent, highlighting that weak liquidity is still a concern for many companies in Asia,” said Brian Grieser, a Moody’s vice president and senior credit officer.
Since the peak reading of 34.2 per cent in April 2016, the number of companies with the weakest score of SGL-4 has declined by four, while the total number of high-yield companies increased by 18.