Delinquencies in auto asset-backed securities to remain stable in India, says Moody’s
Summary
The global rating agency Moody’s Investor Services on Monday said that it maintains its forecast for the auto ABS in the Asia-Pacific region. In a note to its clients, Moody’s said that the auto asset-backed securities (ABS) for China, Australia, Japan and India will perform well, despite differences in individual markets. “In India, auto ABS …
The global rating agency Moody’s Investor Services on Monday said that it maintains its forecast for the auto ABS in the Asia-Pacific region.
In a note to its clients, Moody’s said that the auto asset-backed securities (ABS) for China, Australia, Japan and India will perform well, despite differences in individual markets.
“In India, auto ABS performance has stabilized after a period of deterioration and we expect delinquencies to remain stable at around current levels through 2018,” said Kan Leung, a Moody’s Vice President and Senior Analyst.
A series of economic reforms implemented by the Indian government such as Goods and Services Tax (GST), demonetization and the transition of vehicles to the new emission standards (BS-IV) , the auto asset-backed securities have steadied over the fourth quarter of 2017, added Leung.
“In India, the average 60+ and 90+ days delinquency rate increased to 5.80% and 3.71% in December 2017, from 5.51% and 3.52% in September 2017 respectively. The performance of commercial vehicle loans has stabilized after a period of deterioration that started with demonetization at the end of 2016,” Moody’s said in a client note.
In the Chinese markets, Moody’s expects the auto loan delinquencies and defaults to be at low while adding that the country will have no significant economic growth as well as an increase in unemployment.
Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout
3 Mins Read
Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter