Asia Pacific

Slow decision-making by the government is weighing on the credit ratings of Tokyo Electric Power Co., analysts at Moody's Investors Service said Thursday, adding that any forced debt waiver by the embattled utility's creditors could result in it being downgraded to junk status, Dow Jones Daily Bankruptcy Review reported. Discord within the Democratic Party of Japan-led government over how to share the burden of compensation related to the crisis at the Fukushima Daiichi nuclear plant has increased uncertainty over Tepco's ability to pay off its debt, the analysts said at a briefing.

China's central bank said it will increase the role of interest rates this year in managing inflation expectations and regulating overall demand, The Wall Street Journal reported. The People's Bank of China also said that during the 12th five-year plan, which lasts until 2015, it will continue to loosen its interest-rate oversight by "gradually liberalizing the pricing rights of some financial products" at chosen financial institutions.

Japan’s economy shrank more than estimated in the first quarter after the March 11 earthquake and tsunami disrupted production and prompted consumers to cut back spending, sending the nation to its third recession in a decade. Gross domestic product contracted an annualized 3.7 percent in the three months through March, following a revised 3 percent drop in the previous quarter, the Cabinet Office said today in Tokyo. The median forecast of 23 economists surveyed by Bloomberg News was for a 1.9 percent drop. Economists typically define a recession as two consecutive quarters of contraction.

Suppliers to Saab Automobile remained reserved Monday after owner Spyker Cars NV said it has found a new partner in China that will provide funds for the troubled Swedish car maker, Dow Jones Daily Bankruptcy Review reported. "On paper it looks like a positive first step," said Svenake Berglie, chief executive of the Swedish supplier organization FGK. "From the supplier side, we'll wait and see what happens next." Spyker said Monday it had signed a deal Pang Da Automobile Trade Co.

In a blow to the Australian banking industry, ratings firm Moody's Investors Service downgraded the debt ratings of the country's four largest banks, citing their dependence on global lending markets, The Australian reported. A downgrade to Aa2 from their previous investment grade rating of Aa1 - one notch below Moody's top rating - will likely increase their costs even as worries grow that Australia's rising interest rates will crimp profitability. The four banks - ANZ, Commonwealth Bank of Australia, Westpac and National Australia Bank - dominate lending in Australia.

One of Australia's biggest fertiliser importers and sellers has become the latest company to go into administration after Switzerland's Western Gulf Advisory failed to deliver on financing, The Australian reported. WGA, which has been accused of taking millions of dollars from Australian companies in upfront fees for loans, is understood to have committed late last year to provide loans to the Interfert and Megafert fertiliser companies owned by South Australian businessmen Peter Evans and John Simper.

Credit checking agency Veda Advantage is applauding proposed changes to the Credit Reporting Privacy Code, under which a person's repayment history on credit cards, mortgage payments, and other types of credit could be included in credit reports, The National Business Review reported. Only externally regulated credit providers including banks, telcos, utilities and registered insurers would have access to the data.

The president of Mitsubishi UFJ Financial Group Inc. hit out at remarks by the government's top spokesman calling for lenders to forgive some of Tokyo Electric Power Co.'s debt, saying the government has no place directly intervening in private-sector business decisions, The Wall Street Journal reported. The comments Monday by Katsunori Nagayasu, president and chief executive of MUFG, Japan's biggest bank by assets, were the strongest yet by the head of a big lender in response to remarks Friday by Chief Cabinet Secretary Yukio Edano.

Saab Automobile owner Spyker Cars NV Monday said it has found a new partner in China that will provide fresh funds for the troubled Swedish car maker, giving investors hope the company can survive after a previous deal collapsed last week, The Wall Street Journal reported. The deal, with Pang Da Automobile Trade Co., will give Saab enough money to restart production and survive for about a year, according to Spyker Chief Executive Victor Muller, but Spyker still needs to find other investors to give it a long-term future.

Jean Jones' receiver says a sale of the national women's clothing chain could be finalised within days, BusinessDay reported. The company, which has 10 stores throughout the country, down from a peak of 20, was placed in receivership last October owing creditors about $2.9 million. Receiver Murray Frost said a conditional deal for the sale of the company had been reached and an unconditional agreement was expected within days. Mr Frost said he had been negotiating with the party for about three months. Initially about eight prospective buyers had expressed interest in the chain.