Asia Pacific economies resilient to shocks: Moody's

Most Asia Pacific sovereigns have a relatively high degree of immunity to external economic shocks with divergent rating momentum, global rating agency Moody's Investors Service said Thursday.

The rating momentum is diverging as some economies drive through ambitious reforms, while others struggle with deep-rooted challenges. A key risk for credit quality is, therefore, whether governments can deliver on policy pledges, Moody's said in its latest report.

"A common challenge for emerging economies in the region will come when the U.S. Federal Reserve begins to raise interest rates," said the report.

Asia Pacific sovereigns generally exhibit strong external payment positions and government debt profiles relative to peers elsewhere in the world -- factors that should stand them in good stead, it noted.

China's slowing growth and the lackluster global economy will dampen export performance in Asia Pacific in the year ahead, thus, weakening an historically key driver of regional output, Moody's said.

As most of the Moody's-rated sovereigns in the region are net oil importers, the recent slump in oil prices will have a largely positive impact on the region. Savings on energy costs will support sovereigns in their efforts to rein in budget deficits or rebuild fiscal buffers, it added. Endi