• Japan nuclear situation “big wild card” for economic, fiscal costs
  • Japan’s 2nd, 3rd extra budgets for reconstruction won’t necessarily be credit negative
  • Market confidence in JGBs could be shaken if govt cannot articulate fiscal consolidation plan

China

  • China policy tightening supports positive rating outlook, needs to be in place for extended period
  • Expect China to retain high growth rate medium-term avoid hard landing

Korea

  • South Korea’s short-term debt not at threatening level yet, not affecting stable credit outlook

Vietnam

  • Vietnam’s tightening needs to be in place for long period of time
  • Authorities need to accept slightly slower growth for economic stability