JAKARTA (TheInsiderStories)Moody’s Investors Service stated that the refinancing risks remain manageable for its infrastructure companies rated Asia (ex Japan), even when 68.5 percent of outstanding bonds from issuers with strong credit quality will mature in 2023, it said in its latest report on Monday (05/06).

In its report, Moody’s stated that the majority of future bond maturities are concentrated in issuers with strong credit quality, while the overall ranked portfolio is also mostly made up of issuers in the industry that are regulated with stable and predictable cash flows.

“Refinancing risk is also partly and favourably affected by the number of years by which asset lives exceed their debt maturities and, for Moody’s rated Asian infrastructure portfolio, on average, we estimate that remaining useful lives exceed debt maturities by a large margin,” said Senior Vice President Moody’s Ray Tay.

Moody’s stressed that there are 15 top issuers (based on outstanding bonds) in Moody’s ranked portfolio, which consists of 82 companies, amounting to about 69 percent of the maturity of upcoming bonds.

The 15 companies are issuers related to the government with an investment rating at least Baa2. High-yield issuer’s account is only 2 percent of future maturity.

“Government ownership, however, predictable cash flow and the age of the remaining assets help limit the risk of refinancing,” said Moody’s analyst.

In addition, Moody’s rating portfolio mainly consists of issuers in regulated industries such as utilities and electricity and gas networks. Such issuers usually benefit from cash flow predictions, and contribute 77 percent of this year’s maturity and 75 percent of maturity in the next five years.

The Moody’s report covers the maturity of 2,874 bonds issued by 82 rated companies, including 67 investment-grade and 15 high-yield companies.

Written by Daniel Deha, Email: daniel@theinsiderstories.com