Downgrades will hit bond market

PETALING JAYA: The ratings downgrades of debt notes issued by players in the Selangor water sector will adversely affect the local corporate bond market as they have shaken investor confidence in the credit risk outlook of the market, according to industry experts.

A fixed-income head with a local banking group, who declined to be named, said the implication to the corporate bond market could be severe with shattered investor confidence that the country had built over the last two decades.