Asian liquidity stress index deteriorates further in October

This level was last seen in 2012.

Moody's Investors Service says that its Asian Liquidity Stress Index (LSI) rose to 27.4% in October from 26.6% in September.

The increase came as the number of rated high-yield companies with the weakest speculative-grade liquidity score (SGL-4) rose to 34 from 33, while the number of rated high-yield companies remained at 124.

The index measures the percentage of high-yield companies with SGL-4 scores and increases when speculative-grade liquidity appears to deteriorate.

"The October decline marks the third straight month in which the Asian LSI has deteriorated, bringing it to a level last seen in late 2012," says Brian Grieser, a Moody's Vice President and Senior Analyst. "When combined with trends witnessed -- which includes downgrades consistently outpacing upgrades and the number of issuers with a negative leaning outlook rising -- the situation highlights the broad weakening of the credit profiles of high-yield issuers across the region," adds Grieser.

However, the October index remains well below the record high of 37% reached in December 2008 amid the global financial crisis.