Fitch: China Growth, Fed Tapering Risks Turn More Urgent in APAC

(The following statement was released by the rating agency)

Link to Fitch Ratings' Report: APAC Risk Radar 1Q14

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=741617

HONG KONG/LONDON, March 26 (Fitch) Fitch Ratings has given greater urgency to 
the risks associated with the withdrawal of foreign funding and, to a lesser 
extent, the risks from a further slowdown in China's economic growth in the 
Asia-Pacific edition of its Risk Radar for 1Q14.

Compared with 3Q13, when the last Risk Radar was issued, the risks associated 
with funds flowing out of the region have become more urgent as the US Federal 
Reserve started to gradually withdraw its stimulus in early 2014. A moderate 
slowdown in growth in Asia-Pacific to sustainable levels, particularly in China, 
could help reduce the risk of bank systemic stress build-up, especially in 
economies that experienced rapid credit expansion in the past few years. An 
abrupt or material slowdown on the other hand, could have negative implications 
on ratings in the region, although this is not the agency's base case for China 
or the region as a whole.

The Risk Radar report is available at www.fitchratings.com or by clicking on the 
link above. 

Contact: 

David Wong

Senior Director

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Fitch (Hong Kong) Limited

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89 Queensway

Hong Kong SAR

Trevor Pitman

Managing Director

+44 20 3530 1059

Media Relations: Wai-Lun Wan, Hong Kong, Tel: +852 2263 9935, Email: 
wailun.wan@fitchratings.com.

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(Repeat for additional subscribers)

March 26 (Reuters) - (The following statement was released by the rating agency)

Fitch Ratings has given greater urgency to the risks associated with the withdrawal of foreign funding and, to a lesser extent, the risks from a further slowdown in China's economic growth in the Asia-Pacific edition of its Risk Radar for 1Q14.

Compared with 3Q13, when the last Risk Radar was issued, the risks associated with funds flowing out of the region have become more urgent as the US Federal Reserve started to gradually withdraw its stimulus in early 2014. A moderate slowdown in growth in Asia-Pacific to sustainable levels, particularly in China, could help reduce the risk of bank systemic stress build-up, especially in economies that experienced rapid credit expansion in the past few years. An abrupt or material slowdown on the other hand, could have negative implications on ratings in the region, although this is not the agency's base case for China or the region as a whole.

The Risk Radar report is available at Href="Link">www.fitchratings.com or by clicking on the link below.

Link to Fitch Ratings' Report: APAC Risk Radar 1Q14

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=741617

((Bangalore Ratings Team, Hotline: +91 80 6677 2513, Bhanu.priya@thomsonreuters.com, Group id: BangaloreRatings@thomsonreuters.com, Reuters Messaging: Bhanu.Priya.reuters.com@reuters.net))

Keywords: Fitch: China Growth, Fed Tapering Risks Turn More