Moody’s: 2017 China Securitization Outlook Stable

According to a recent announcement from Moody’s Investors Service, the performance of assets backing Chinese auto loan ABS and RMBS will be stable through 2017, but negative for CLOs.

"We expect the credit quality of auto loans backing new Chinese auto ABS issued in 2017 to be good, underpinned by the tight lending criteria of lenders," says Kan Leung, Assistant Vice President and Analyst at Moody’s.

Moody's states that credit quality will be good for assets backing both auto loan ABS and RMBS deals, and delinquencies will remain low in 2017. For CLOs, Moody's says asset quality will be good for new deals issued in 2017 but, for outstanding deals, performance will be negative because delinquencies are expected to increase in light of high levels of corporate leverage, and corporate loan delinquencies.

In another announcement, Moody’s also predicts the performance of the securitization markets of India, Korea and Singapore will be stable in 2017.

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