US Dollar Slips From 18-Month High Ahead of Key Inflation Data 
Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed 
U.S. Stocks vs. Bonds: Are Diverging Valuations Signaling a Shift? 
Gold Prices Mixed Ahead of US Inflation Data and Fed Rate Outlook 
Stock Futures Dip as Investors Await Key Payrolls Data 
Fed May Resume Rate Hikes: BofA Analysts Outline Key Scenarios 
UBS Predicts Potential Fed Rate Cut Amid Strong US Economic Data 
IMF Warns US Debt Crisis Needs Fiscal Action, Urges China to Boost Consumption 
UBS Projects Mixed Market Outlook for 2025 Amid Trump Policy Uncertainty 
China Resumes US Soybean Purchases After Trump-Xi Summit 
Moldova Criticizes Russia Amid Transdniestria Energy Crisis 
Asian Stocks Plunge as AI Chip Selloff Hits South Korea and Japan 
Fed's Hammack Urges Faster Rate Hikes to Fight Inflation 
Indonesia Surprises Markets with Interest Rate Cut Amid Currency Pressure 
U.S. Banks Report Strong Q4 Profits Amid Investment Banking Surge 
European Auto Stocks Rise as EU-China Trade Deal Targets Hybrid Imports 
Gaza Olive Harvest Collapses as War Destroys Farmland 
Add as a preferred source on Google
Moody's Investors Service says that its outlook for rated Korean non-financial corporates is stable for 2017, supported by steady economic growth, low commodity prices and the companies' competitive edges.
"We expect financial leverage to remain broadly stable or slightly improve for most rated companies, backed by stable earnings and prudent investments," says Chris Park, a Moody's Associate Managing Director.
"However, conditions vary by sector. Fundamentals for the telecom, refining and chemical sectors will remain favorable, but challenges will continue for the retail and steel sectors," adds Park.
Moody's conclusions are contained in its just-released 2017 outlook presentation for Korean non-financial corporates.
Moody's expects Korea's economic growth to remain largely stable at 2.5% in 2017, compared to an estimated 2.7% in 2016. Although down from the historical average, Moody's does not expect this slower growth to meaningfully hurt overall domestic demand.
This steady economic growth, combined with stabilizing commodity prices and the companies' competitive edges, will result in stable or modestly increasing earnings for most rated companies.
Stable earning and/or manageable capex levels in turn will lead to stable or slightly improving financial leverage across most sectors, although leverage will remain elevated for companies in the steel, retail and utilities sectors.
The rated corporates' solid credit profiles will support their continued strong access to the domestic and international financial markets.
In addition, low domestic interest rates will keep the funding environment favorable to help companies improve interest coverage.
The credit quality of most rated government-related issuers (GRIs) and their subsidiaries will also remain stable, because the Korean government's (Aa2 stable) public-sector reform plan, announced in June 2016, calls for only moderate changes in the operations of most companies.
Major external factors that could pose downside risks to the stable outlook include potentially increasing protectionist policies in advanced economies and a slowdown in China and/or advanced economies.
