ADB trims developing Asia's growth forecast

MANILA • The Asian Development Bank (ADB) slightly lowered its 2016 growth forecast for developing Asia yesterday, reflecting slower-than -expected expansion in India.

Developing Asia, which groups 45 countries in the Asia-Pacific region, is now expected to expand 5.6 per cent this year, rather than 5.7 per cent, the ADB said in a supplement to its Asian Development Outlook 2016.

The ADB trimmed its 2016 growth estimate for India to 7 per cent from 7.4 per cent due to weak investment, agricultural slowdown and the government's recent demonetisation.

The lender kept China's growth forecasts for this year and next at 6.6 per cent and 6.4 per cent, respectively. The growth estimate for South-east Asia was kept at 4.5 per cent for this year and 4.6 per cent next year.

REUTERS

S&P may cut Dalian debt rating to 'junk' status

HONG KONG • Ratings agency S&P said it could lower the debt rating on Dalian Wanda Commercial Properties again, after downgrading it for a second time this year on Monday, if the Chinese developer does not list on the mainland within the next two years.

S&P downgraded the rating on Wanda, owned by China's richest man, Mr Wang Jianlin, by one notch to "BBB-" on Monday, citing rising financial leverage and slower-than-expected asset disposal. Another downgrade will push the rating into "junk" category.

Wanda Commercial's outlook remains "negative", S&P said, due to uncertainty over a proposed listing on the mainland. The firm was delisted from Hong Kong with an aim to relist it in China.

However, a relisting has proven more difficult than expected as China's securities regulator has increased scrutiny.

REUTERS