More than a quarter of APAC companies vulnerable if Russia-Ukraine crisis escalates

Over a quarter of rated Asia-Pacific (APAC) companies will be at risk under a downside scenario of a global recession and a more severe liquidity squeeze if the Russia-Ukraine military conflict escalates, according to Moody’s Investors Service in a new report.

• Study analyzes impact of Russia-Ukraine crisis on APAC nonfinancial companies under updated baseline and downside scenarios
• More than a quarter of APAC companies face material risks under downside scenario

“A small number of rated companies face material credit pressure under our baseline scenario because of refinancing risks amid current market volatility. However, under a more severe downside scenario, more than 27% are vulnerable, particularly speculative-grade companies and those with limited balance-sheet buffers or exposed to a supply chain shock,” says Chris Park, a Moody’s Associate Managing Director.

Three channels…