(The following statement was released by the rating agency)
Link to Fitch Ratings' Report: Top 10 Corporate Debt, Cash Flow & Leverage
SYDNEY/SINGAPORE, October 06 (Fitch) Energy and utility companies, particularly
Chinese state-owned enterprises (SOEs), dominate the list of ten Asia-Pacific
corporates that will see the biggest increase in net debt from the end of 2012
to 2014, Fitch Ratings says.
In contrast companies in the technology, media and telecommunications (TMT) and
auto sectors feature prominently among the top 10 largest net debt shedders in
In a report - 'Top 10 Corporate Debt, Cash Flow & Leverage Changes' - published
today, we forecast that five of the top 10 debt raisers (those increasing net
debt under our forecasts) over 2012-2014 will be Chinese SOE heavyweights: China
Mobile Limited, China National Petroleum Corporation (CNPC), State Grid
Corporation of China (SGCC), CNOOC Limted, and China General Nuclear Power
Corporation (CGNPC). These companies are expanding capacity and hence have
increasing capex requirements.
In the 'Projected' lists covering 2012-2014, the top 10 debt raisers still
outstrip the top 10 debt shedders (USD137bn to be raised versus USD73bn to be
shed), although not to the same extent as on the 'Past' lists covering 2009-2012
(where USD207bn was raised and only USD49bn shed).
The report also examines the top 10 Cash Flow (EBITDAR) Boosters and Dippers,
and the top 10 Leverage 'Risers' and 'Fallers'. The position of four Chinese
SOEs (China Mobile, CNPC, CNNOC and SGCC) on the Top 10 Cash Flow Boosters list
appears to justify their position on the Top 10 Debt Raisers list.
No issuers are in the 'red pain zone' of rapid cash flow decline and increasing
debt. However, Samsung Electronics and Toyota Motor Corp. are in the 'blue joy
zone' of strong cash flow increase and debt paydown. Natural resources
corporates, including BHP Billiton Ltd., POSCO and Aluminum Corporation of China
Limited (Chalco) dominate the Top 10 Cash Flow Dippers list, and Chinese
property and homebuilding corporates are prominent on both our Projected Top 10
Leverage Risers and Fallers lists.
Fitch has taken negative rating actions since 2009 on most of the companies on
the Top 10 Cash Flow Dippers list for the 'All-In' period covering 2009-2014,
where five have been downgraded and one (Yanzhou Coal) is on Negative Outlook.
Four of the downgrades are tech sector names - Panasonic, KT Corp, ZTE and Acer.
The analysis is available at www.fitchratings.com.
Head of APAC Research
Corporate Ratings Group
+61 2 8256 0366
Managing Director, APAC Corporate Ratings
+65 6796 7231
Media Relations: Iselle Gonzalez, Sydney, Tel: +61 2 8256 0326, Email:
firstname.lastname@example.org; Leslie Tan, Singapore, Tel: +65 67 96 7234,
Additional information is available at www.fitchratings.com.
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