ASIA TO FARE BETTER IN GLOBAL CORPORATE DEFAULT RATE

KUALA LUMPUR, March 23 (Bernama) -- Global corporate default rates and
restructuring are likely to peak in the first half of this year, but Asia will
fare better than western counterparts, said Fitch Ratings.

"United States and Europe are leading and likely to fare worse than Asia,
largely because of higher corporate leverage in western markets," its Head of
Asia Pacific Corporates Managing Director, Tony Stringer said Tuesday.

Speaking to reporters after Fitch Rating’s 2010 credit briefing here today,
he said corporate default rate in Asia is likely to be less than five per cent
given its healthy balance sheet and less debt.

The growth number shows resilience and Asian countries came out from
recession more quickly and in better health than the western counterparts, with
China and India leading, Stringer said.

He also attributed the lower corporate default rate in Asia to Asian
companies being more conservative and its robust banking system.

The prospects of large scale default in Asia are remote as Asian banks are
less dependent on external funding and their financial systems are less exposed
to external volatility, he explained.

He also pointed out that Malaysian companies like IOI, Petronas and Tenaga
had stable rating outlook.

Fitch Ratings has assigned over 1,800 ratings to a broad cross selection of
issuers. Among them are sovereigns, corporates, as well as banks, securities and
finance companies.

--BERNAMA