Moody's Investors Service says the high-yield default rate for non-financial corporates in Asia Pacific, excluding Japan, would end the year at a low 1.6 percent, lower than the 2 percent forecast made in February, based on Moody's Credit Transition Model (CTM). "The predicted default rate anticipates a continued narrowing of the high yield spread and stability of the high yield corporate portfolio," a Moody's Group credit officer, Clara Lau, said in a statement. Lau was speaking on the just-released Moody's report titled, High-Yield Corporates in Asia Pacific (ex-Japan) Expected to End 2013 with Low Default Rate. Moody's report says the proportion of ratings with negative outlooks fell significantly to 22 percent in August 2013 versus 37 percent at the end of 2012. "The low estimated default rate of 1.6 percent translates into one or two defaults for all of 2013," Lau said. "The forecast is also based on our assessment that if quantitative easing in the US recedes, it will be done in a measured manner and will not materially disrupt credit markets. We expect quantitative easing programs in the US to continue into 2014,” Lau added. Furthermore, the low estimated default rate reflects our assumptions of continued gradual growth for advanced economies, and sustained but slower growth for major emerging economies such as China. Moody's report also says that the average rating of companies in Moody's high yield portfolio remained at B1/B2 as of end-August; similar to the level as of end-2012 and, in terms of rating transitions between August 2012 and July 2013, Asian investment grade corporates generally exhibited higher rating stability when compared with speculative grade issuers. In addition, investment grade firms in Asia displayed lower rating volatility than their global peers. Moreover, while the rating trend for global corporates is generally negative, the opposite was true for Asian firms. Moody's report also says there were more multi-notches rating movements for global corporates than for Asian firms, across all rating categories.