Pressure on AsiaPac companies as Covid-19 impact becomes clearer

FILE PHOTO: Men wearing protective masks walk inside the premises of a hospital where a special ward has been set up for the coronavirus disease in Mumbai, India, March 17, 2020. REUTERS/Francis Mascarenhas

KUALA LUMPUR: Moody’s Investors Service said about 22 per cent of 476 rated non-financial companies in Asia Pacific (APAC) have high exposure to coronavirus disruptions, up from 20 per cent in March, as the effects of the pandemic on companies' credit quality have become more apparent.

"Airlines, automakers and auto part suppliers, casinos, discretionary retail, and hospitality companies continue to bear the economic brunt of the outbreak, given their sensitivity to consumer demand and travel restrictions," Moody's managing director and regional head of Asia Pacific corporate finance group, Laura Acres, said in an update on the report published in April on APAC corporates' exposure to coronavirus.