Archive for May, 2008
Posted by luxuryasiahome on May 31, 2008
Consortium that inked in-principle deal declines to say why sale fell through
A PLAN to sell the historic Raffles Hotel again has fallen through.
The Business Times (BT) yesterday reported that a consortium led by former Credit Suisse banker Mark Pawley, which had inked an in-principle deal to buy the hotel earlier this month, was ‘very disappointed’ with the outcome.
WHAT A PITY: ‘This would have involved an assured distinct identity for Raffles Hotel as a flagship for Singapore in the international hospitality industry and a rejuvenation of the hotel.’ – SPOKESMAN FOR THE CONSORTIUM, expressing disappointment over the failure to buy Raffles Hotel (above) — ST FILE PHOTO
Its spokesman confirmed that the deal was off.
‘This would have involved an assured distinct identity for Raffles Hotel as a flagship for Singapore in the international hospitality industry and a rejuvenation of the hotel,’ the paper quoted her as saying.
Citing confidentiality clauses, she declined to give reasons why the deal soured.
But she denied that there was any issue with the source of the funding, which is believed to be a family trust linked to a European family.
If the deal had gone through, the 121-year-old historic hotel and its adjoining shopping arcade would have changed hands for the second time in three years.
The agreed price was reportedly about $650 million – more than triple the $200 million paid by its American and Middle Eastern owners in 2005.
This was seen as a reflection of the strong boost in demand for hotel space in Singapore in recent years, with the country’s fast-growing visitor arrivals.
Mr Pawley is the chief executive of Singapore-based Oxley Capital Group, a private investment house focusing on real estate and private equity.
While he was head of the Asian real estate, gaming and lodging business at Credit Suisse Investment Banking in Asia, he was involved with the $1.7 billion sale of the entire Raffles Holdings’ hotel portfolio – including Raffles Hotel in Singapore – to United States-based private equity firm Colony Capital in 2005.
Colony later merged that portfolio with Fairmont Hotels & Resorts’ assets to create Fairmont Raffles Hotels International (FRHI). Colony reportedly holds about a 40 per cent stake in FRHI, while Saudi Prince Alwaleed bin Talal’s Kingdom Hotels International owns the rest.
On May 8, FRHI announced that it had reached an in-principle agreement to sell off Raffles Hotel. But as with its past real estate transactions, any hotels sold would continue to be part of the company’s hotel collection.
FRHI’s hotel management arm, Raffles Hotels & Resorts, also secured a long-term management contract to manage the hotel, reportedly for 40 years.
Market watchers told BT that most existing hotel groups would think twice about buying a hotel with a long-term management contract from the seller. They speculated that this clause might have scuppered the deal.
Source : Straits Times – 31 May 2008
Posted in General, Hotel | Tagged: Colony Capital, Fairmont Raffles Hotels International, Kingdom Hotels International, Mark Pawley, Prince Alwaleed bin Talal, Raffles Hotel, Raffles Hotels & Resorts, Singapore Hotels | Leave a Comment »
Posted by luxuryasiahome on May 31, 2008
Consortium that inked in-principle deal declines to say why sale fell through
A PLAN to sell the historic Raffles Hotel again has fallen through.
The Business Times (BT) yesterday reported that a consortium led by former Credit Suisse banker Mark Pawley, which had inked an in-principle deal to buy the hotel earlier this month, was ‘very disappointed’ with the outcome.
WHAT A PITY: ‘This would have involved an assured distinct identity for Raffles Hotel as a flagship for Singapore in the international hospitality industry and a rejuvenation of the hotel.’ – SPOKESMAN FOR THE CONSORTIUM, expressing disappointment over the failure to buy Raffles Hotel (above) — ST FILE PHOTO
Its spokesman confirmed that the deal was off.
‘This would have involved an assured distinct identity for Raffles Hotel as a flagship for Singapore in the international hospitality industry and a rejuvenation of the hotel,’ the paper quoted her as saying.
Citing confidentiality clauses, she declined to give reasons why the deal soured.
But she denied that there was any issue with the source of the funding, which is believed to be a family trust linked to a European family.
If the deal had gone through, the 121-year-old historic hotel and its adjoining shopping arcade would have changed hands for the second time in three years.
The agreed price was reportedly about $650 million – more than triple the $200 million paid by its American and Middle Eastern owners in 2005.
This was seen as a reflection of the strong boost in demand for hotel space in Singapore in recent years, with the country’s fast-growing visitor arrivals.
Mr Pawley is the chief executive of Singapore-based Oxley Capital Group, a private investment house focusing on real estate and private equity.
While he was head of the Asian real estate, gaming and lodging business at Credit Suisse Investment Banking in Asia, he was involved with the $1.7 billion sale of the entire Raffles Holdings’ hotel portfolio – including Raffles Hotel in Singapore – to United States-based private equity firm Colony Capital in 2005.
Colony later merged that portfolio with Fairmont Hotels & Resorts’ assets to create Fairmont Raffles Hotels International (FRHI). Colony reportedly holds about a 40 per cent stake in FRHI, while Saudi Prince Alwaleed bin Talal’s Kingdom Hotels International owns the rest.
On May 8, FRHI announced that it had reached an in-principle agreement to sell off Raffles Hotel. But as with its past real estate transactions, any hotels sold would continue to be part of the company’s hotel collection.
FRHI’s hotel management arm, Raffles Hotels & Resorts, also secured a long-term management contract to manage the hotel, reportedly for 40 years.
Market watchers told BT that most existing hotel groups would think twice about buying a hotel with a long-term management contract from the seller. They speculated that this clause might have scuppered the deal.
Source : Straits Times – 31 May 2008
Posted in General, Hotel | Tagged: Colony Capital, Fairmont Raffles Hotels International, Kingdom Hotels International, Mark Pawley, Prince Alwaleed bin Talal, Raffles Hotel, Raffles Hotels & Resorts, Singapore Hotels | Leave a Comment »
Posted by luxuryasiahome on May 31, 2008
Consortium that inked in-principle deal declines to say why sale fell through
A PLAN to sell the historic Raffles Hotel again has fallen through.
The Business Times (BT) yesterday reported that a consortium led by former Credit Suisse banker Mark Pawley, which had inked an in-principle deal to buy the hotel earlier this month, was ‘very disappointed’ with the outcome.
WHAT A PITY: ‘This would have involved an assured distinct identity for Raffles Hotel as a flagship for Singapore in the international hospitality industry and a rejuvenation of the hotel.’ – SPOKESMAN FOR THE CONSORTIUM, expressing disappointment over the failure to buy Raffles Hotel (above) — ST FILE PHOTO
Its spokesman confirmed that the deal was off.
‘This would have involved an assured distinct identity for Raffles Hotel as a flagship for Singapore in the international hospitality industry and a rejuvenation of the hotel,’ the paper quoted her as saying.
Citing confidentiality clauses, she declined to give reasons why the deal soured.
But she denied that there was any issue with the source of the funding, which is believed to be a family trust linked to a European family.
If the deal had gone through, the 121-year-old historic hotel and its adjoining shopping arcade would have changed hands for the second time in three years.
The agreed price was reportedly about $650 million – more than triple the $200 million paid by its American and Middle Eastern owners in 2005.
This was seen as a reflection of the strong boost in demand for hotel space in Singapore in recent years, with the country’s fast-growing visitor arrivals.
Mr Pawley is the chief executive of Singapore-based Oxley Capital Group, a private investment house focusing on real estate and private equity.
While he was head of the Asian real estate, gaming and lodging business at Credit Suisse Investment Banking in Asia, he was involved with the $1.7 billion sale of the entire Raffles Holdings’ hotel portfolio – including Raffles Hotel in Singapore – to United States-based private equity firm Colony Capital in 2005.
Colony later merged that portfolio with Fairmont Hotels & Resorts’ assets to create Fairmont Raffles Hotels International (FRHI). Colony reportedly holds about a 40 per cent stake in FRHI, while Saudi Prince Alwaleed bin Talal’s Kingdom Hotels International owns the rest.
On May 8, FRHI announced that it had reached an in-principle agreement to sell off Raffles Hotel. But as with its past real estate transactions, any hotels sold would continue to be part of the company’s hotel collection.
FRHI’s hotel management arm, Raffles Hotels & Resorts, also secured a long-term management contract to manage the hotel, reportedly for 40 years.
Market watchers told BT that most existing hotel groups would think twice about buying a hotel with a long-term management contract from the seller. They speculated that this clause might have scuppered the deal.
Source : Straits Times – 31 May 2008
Posted in General, Hotel | Tagged: Colony Capital, Fairmont Raffles Hotels International, Kingdom Hotels International, Mark Pawley, Prince Alwaleed bin Talal, Raffles Hotel, Raffles Hotels & Resorts, Singapore Hotels | Leave a Comment »
Posted by luxuryasiahome on May 31, 2008
Consortium that inked in-principle deal declines to say why sale fell through
A PLAN to sell the historic Raffles Hotel again has fallen through.
The Business Times (BT) yesterday reported that a consortium led by former Credit Suisse banker Mark Pawley, which had inked an in-principle deal to buy the hotel earlier this month, was ‘very disappointed’ with the outcome.
WHAT A PITY: ‘This would have involved an assured distinct identity for Raffles Hotel as a flagship for Singapore in the international hospitality industry and a rejuvenation of the hotel.’ – SPOKESMAN FOR THE CONSORTIUM, expressing disappointment over the failure to buy Raffles Hotel (above) — ST FILE PHOTO
Its spokesman confirmed that the deal was off.
‘This would have involved an assured distinct identity for Raffles Hotel as a flagship for Singapore in the international hospitality industry and a rejuvenation of the hotel,’ the paper quoted her as saying.
Citing confidentiality clauses, she declined to give reasons why the deal soured.
But she denied that there was any issue with the source of the funding, which is believed to be a family trust linked to a European family.
If the deal had gone through, the 121-year-old historic hotel and its adjoining shopping arcade would have changed hands for the second time in three years.
The agreed price was reportedly about $650 million – more than triple the $200 million paid by its American and Middle Eastern owners in 2005.
This was seen as a reflection of the strong boost in demand for hotel space in Singapore in recent years, with the country’s fast-growing visitor arrivals.
Mr Pawley is the chief executive of Singapore-based Oxley Capital Group, a private investment house focusing on real estate and private equity.
While he was head of the Asian real estate, gaming and lodging business at Credit Suisse Investment Banking in Asia, he was involved with the $1.7 billion sale of the entire Raffles Holdings’ hotel portfolio – including Raffles Hotel in Singapore – to United States-based private equity firm Colony Capital in 2005.
Colony later merged that portfolio with Fairmont Hotels & Resorts’ assets to create Fairmont Raffles Hotels International (FRHI). Colony reportedly holds about a 40 per cent stake in FRHI, while Saudi Prince Alwaleed bin Talal’s Kingdom Hotels International owns the rest.
On May 8, FRHI announced that it had reached an in-principle agreement to sell off Raffles Hotel. But as with its past real estate transactions, any hotels sold would continue to be part of the company’s hotel collection.
FRHI’s hotel management arm, Raffles Hotels & Resorts, also secured a long-term management contract to manage the hotel, reportedly for 40 years.
Market watchers told BT that most existing hotel groups would think twice about buying a hotel with a long-term management contract from the seller. They speculated that this clause might have scuppered the deal.
Source : Straits Times – 31 May 2008
Posted in General, Hotel | Tagged: Colony Capital, Fairmont Raffles Hotels International, Kingdom Hotels International, Mark Pawley, Prince Alwaleed bin Talal, Raffles Hotel, Raffles Hotels & Resorts, Singapore Hotels | Leave a Comment »
Posted by luxuryasiahome on May 31, 2008
Consortium that inked in-principle deal declines to say why sale fell through
A PLAN to sell the historic Raffles Hotel again has fallen through.
The Business Times (BT) yesterday reported that a consortium led by former Credit Suisse banker Mark Pawley, which had inked an in-principle deal to buy the hotel earlier this month, was ‘very disappointed’ with the outcome.
WHAT A PITY: ‘This would have involved an assured distinct identity for Raffles Hotel as a flagship for Singapore in the international hospitality industry and a rejuvenation of the hotel.’ – SPOKESMAN FOR THE CONSORTIUM, expressing disappointment over the failure to buy Raffles Hotel (above) — ST FILE PHOTO
Its spokesman confirmed that the deal was off.
‘This would have involved an assured distinct identity for Raffles Hotel as a flagship for Singapore in the international hospitality industry and a rejuvenation of the hotel,’ the paper quoted her as saying.
Citing confidentiality clauses, she declined to give reasons why the deal soured.
But she denied that there was any issue with the source of the funding, which is believed to be a family trust linked to a European family.
If the deal had gone through, the 121-year-old historic hotel and its adjoining shopping arcade would have changed hands for the second time in three years.
The agreed price was reportedly about $650 million – more than triple the $200 million paid by its American and Middle Eastern owners in 2005.
This was seen as a reflection of the strong boost in demand for hotel space in Singapore in recent years, with the country’s fast-growing visitor arrivals.
Mr Pawley is the chief executive of Singapore-based Oxley Capital Group, a private investment house focusing on real estate and private equity.
While he was head of the Asian real estate, gaming and lodging business at Credit Suisse Investment Banking in Asia, he was involved with the $1.7 billion sale of the entire Raffles Holdings’ hotel portfolio – including Raffles Hotel in Singapore – to United States-based private equity firm Colony Capital in 2005.
Colony later merged that portfolio with Fairmont Hotels & Resorts’ assets to create Fairmont Raffles Hotels International (FRHI). Colony reportedly holds about a 40 per cent stake in FRHI, while Saudi Prince Alwaleed bin Talal’s Kingdom Hotels International owns the rest.
On May 8, FRHI announced that it had reached an in-principle agreement to sell off Raffles Hotel. But as with its past real estate transactions, any hotels sold would continue to be part of the company’s hotel collection.
FRHI’s hotel management arm, Raffles Hotels & Resorts, also secured a long-term management contract to manage the hotel, reportedly for 40 years.
Market watchers told BT that most existing hotel groups would think twice about buying a hotel with a long-term management contract from the seller. They speculated that this clause might have scuppered the deal.
Source : Straits Times – 31 May 2008
Posted in General, Hotel | Tagged: Colony Capital, Fairmont Raffles Hotels International, Kingdom Hotels International, Mark Pawley, Prince Alwaleed bin Talal, Raffles Hotel, Raffles Hotels & Resorts, Singapore Hotels | Leave a Comment »
Posted by luxuryasiahome on May 31, 2008
Consortium that inked in-principle deal declines to say why sale fell through
A PLAN to sell the historic Raffles Hotel again has fallen through.
The Business Times (BT) yesterday reported that a consortium led by former Credit Suisse banker Mark Pawley, which had inked an in-principle deal to buy the hotel earlier this month, was ‘very disappointed’ with the outcome.
WHAT A PITY: ‘This would have involved an assured distinct identity for Raffles Hotel as a flagship for Singapore in the international hospitality industry and a rejuvenation of the hotel.’ – SPOKESMAN FOR THE CONSORTIUM, expressing disappointment over the failure to buy Raffles Hotel (above) — ST FILE PHOTO
Its spokesman confirmed that the deal was off.
‘This would have involved an assured distinct identity for Raffles Hotel as a flagship for Singapore in the international hospitality industry and a rejuvenation of the hotel,’ the paper quoted her as saying.
Citing confidentiality clauses, she declined to give reasons why the deal soured.
But she denied that there was any issue with the source of the funding, which is believed to be a family trust linked to a European family.
If the deal had gone through, the 121-year-old historic hotel and its adjoining shopping arcade would have changed hands for the second time in three years.
The agreed price was reportedly about $650 million – more than triple the $200 million paid by its American and Middle Eastern owners in 2005.
This was seen as a reflection of the strong boost in demand for hotel space in Singapore in recent years, with the country’s fast-growing visitor arrivals.
Mr Pawley is the chief executive of Singapore-based Oxley Capital Group, a private investment house focusing on real estate and private equity.
While he was head of the Asian real estate, gaming and lodging business at Credit Suisse Investment Banking in Asia, he was involved with the $1.7 billion sale of the entire Raffles Holdings’ hotel portfolio – including Raffles Hotel in Singapore – to United States-based private equity firm Colony Capital in 2005.
Colony later merged that portfolio with Fairmont Hotels & Resorts’ assets to create Fairmont Raffles Hotels International (FRHI). Colony reportedly holds about a 40 per cent stake in FRHI, while Saudi Prince Alwaleed bin Talal’s Kingdom Hotels International owns the rest.
On May 8, FRHI announced that it had reached an in-principle agreement to sell off Raffles Hotel. But as with its past real estate transactions, any hotels sold would continue to be part of the company’s hotel collection.
FRHI’s hotel management arm, Raffles Hotels & Resorts, also secured a long-term management contract to manage the hotel, reportedly for 40 years.
Market watchers told BT that most existing hotel groups would think twice about buying a hotel with a long-term management contract from the seller. They speculated that this clause might have scuppered the deal.
Source : Straits Times – 31 May 2008
Posted in General, Hotel | Tagged: Colony Capital, Fairmont Raffles Hotels International, Kingdom Hotels International, Mark Pawley, Prince Alwaleed bin Talal, Raffles Hotel, Raffles Hotels & Resorts, Singapore Hotels | Leave a Comment »
Posted by luxuryasiahome on May 31, 2008
Consortium that inked in-principle deal declines to say why sale fell through
A PLAN to sell the historic Raffles Hotel again has fallen through.
The Business Times (BT) yesterday reported that a consortium led by former Credit Suisse banker Mark Pawley, which had inked an in-principle deal to buy the hotel earlier this month, was ‘very disappointed’ with the outcome.
WHAT A PITY: ‘This would have involved an assured distinct identity for Raffles Hotel as a flagship for Singapore in the international hospitality industry and a rejuvenation of the hotel.’ – SPOKESMAN FOR THE CONSORTIUM, expressing disappointment over the failure to buy Raffles Hotel (above) — ST FILE PHOTO
Its spokesman confirmed that the deal was off.
‘This would have involved an assured distinct identity for Raffles Hotel as a flagship for Singapore in the international hospitality industry and a rejuvenation of the hotel,’ the paper quoted her as saying.
Citing confidentiality clauses, she declined to give reasons why the deal soured.
But she denied that there was any issue with the source of the funding, which is believed to be a family trust linked to a European family.
If the deal had gone through, the 121-year-old historic hotel and its adjoining shopping arcade would have changed hands for the second time in three years.
The agreed price was reportedly about $650 million – more than triple the $200 million paid by its American and Middle Eastern owners in 2005.
This was seen as a reflection of the strong boost in demand for hotel space in Singapore in recent years, with the country’s fast-growing visitor arrivals.
Mr Pawley is the chief executive of Singapore-based Oxley Capital Group, a private investment house focusing on real estate and private equity.
While he was head of the Asian real estate, gaming and lodging business at Credit Suisse Investment Banking in Asia, he was involved with the $1.7 billion sale of the entire Raffles Holdings’ hotel portfolio – including Raffles Hotel in Singapore – to United States-based private equity firm Colony Capital in 2005.
Colony later merged that portfolio with Fairmont Hotels & Resorts’ assets to create Fairmont Raffles Hotels International (FRHI). Colony reportedly holds about a 40 per cent stake in FRHI, while Saudi Prince Alwaleed bin Talal’s Kingdom Hotels International owns the rest.
On May 8, FRHI announced that it had reached an in-principle agreement to sell off Raffles Hotel. But as with its past real estate transactions, any hotels sold would continue to be part of the company’s hotel collection.
FRHI’s hotel management arm, Raffles Hotels & Resorts, also secured a long-term management contract to manage the hotel, reportedly for 40 years.
Market watchers told BT that most existing hotel groups would think twice about buying a hotel with a long-term management contract from the seller. They speculated that this clause might have scuppered the deal.
Source : Straits Times – 31 May 2008
Posted in General, Hotel | Tagged: Colony Capital, Fairmont Raffles Hotels International, Kingdom Hotels International, Mark Pawley, Prince Alwaleed bin Talal, Raffles Hotel, Raffles Hotels & Resorts, Singapore Hotels | Leave a Comment »
Posted by luxuryasiahome on May 31, 2008
Consortium that inked in-principle deal declines to say why sale fell through
A PLAN to sell the historic Raffles Hotel again has fallen through.
The Business Times (BT) yesterday reported that a consortium led by former Credit Suisse banker Mark Pawley, which had inked an in-principle deal to buy the hotel earlier this month, was ‘very disappointed’ with the outcome.
WHAT A PITY: ‘This would have involved an assured distinct identity for Raffles Hotel as a flagship for Singapore in the international hospitality industry and a rejuvenation of the hotel.’ – SPOKESMAN FOR THE CONSORTIUM, expressing disappointment over the failure to buy Raffles Hotel (above) — ST FILE PHOTO
Its spokesman confirmed that the deal was off.
‘This would have involved an assured distinct identity for Raffles Hotel as a flagship for Singapore in the international hospitality industry and a rejuvenation of the hotel,’ the paper quoted her as saying.
Citing confidentiality clauses, she declined to give reasons why the deal soured.
But she denied that there was any issue with the source of the funding, which is believed to be a family trust linked to a European family.
If the deal had gone through, the 121-year-old historic hotel and its adjoining shopping arcade would have changed hands for the second time in three years.
The agreed price was reportedly about $650 million – more than triple the $200 million paid by its American and Middle Eastern owners in 2005.
This was seen as a reflection of the strong boost in demand for hotel space in Singapore in recent years, with the country’s fast-growing visitor arrivals.
Mr Pawley is the chief executive of Singapore-based Oxley Capital Group, a private investment house focusing on real estate and private equity.
While he was head of the Asian real estate, gaming and lodging business at Credit Suisse Investment Banking in Asia, he was involved with the $1.7 billion sale of the entire Raffles Holdings’ hotel portfolio – including Raffles Hotel in Singapore – to United States-based private equity firm Colony Capital in 2005.
Colony later merged that portfolio with Fairmont Hotels & Resorts’ assets to create Fairmont Raffles Hotels International (FRHI). Colony reportedly holds about a 40 per cent stake in FRHI, while Saudi Prince Alwaleed bin Talal’s Kingdom Hotels International owns the rest.
On May 8, FRHI announced that it had reached an in-principle agreement to sell off Raffles Hotel. But as with its past real estate transactions, any hotels sold would continue to be part of the company’s hotel collection.
FRHI’s hotel management arm, Raffles Hotels & Resorts, also secured a long-term management contract to manage the hotel, reportedly for 40 years.
Market watchers told BT that most existing hotel groups would think twice about buying a hotel with a long-term management contract from the seller. They speculated that this clause might have scuppered the deal.
Source : Straits Times – 31 May 2008
Posted in General, Hotel | Tagged: Colony Capital, Fairmont Raffles Hotels International, Kingdom Hotels International, Mark Pawley, Prince Alwaleed bin Talal, Raffles Hotel, Raffles Hotels & Resorts, Singapore Hotels | Leave a Comment »
Posted by luxuryasiahome on May 31, 2008
1st phase to last till end-2009, but delays to traffic will be minimal
WORK will begin on Monday to widen the Central Expressway (CTE), but officials say the construction will cause minimal delays on Singapore’s busiest thoroughfare.
The Land Transport Authority (LTA) will add a fourth lane on both sides of a 1.5km stretch between Ang Mo Kio Avenue 1 and Ang Mo Kio Avenue 3.
The work, which will cost $16.9 million, is scheduled to last till the end of next year. The LTA said for most of that time, the expressway’s six lanes will remain open.
However, it will close after 11pm on some nights for repaving and to remove an overhead pedestrian crossing.
This is the first phase of a plan to ease congestion on the CTE, which is plagued by traffic jams during morning and evening peak periods.
The Ministry of Transport hopes the work, together with the opening of the Circle Line, Kallang-Paya Lebar Expressway and North-South Expressway, will ease congestion on the north-south stretch.
The LTA also plans to expand another 5.5km section of the CTE from the Pan-Island Expressway to Yio Chu Kang Road by 2011.
As part of the project, a new sheltered overhead bridge – replacing the old uncovered bridge – will be built to connect Housing Board blocks with the Serangoon Gardens private estate.
To keep the racket down, the LTA will use noise reduction blankets on its hoardings and put noise guards on machinery.
The authority will also use, for the first time, a more costly method of installing pipes running under the roads.
Unlike the usual ‘cut-and- cover’ method, where motorists have to be redirected to their lanes, the pipes are laid underground without the need to tear up lanes.
Source : Straits Times – 31 May 2008
Posted in Construction, General | Tagged: Central Expressway, CTE, CTE Widening, Singapore Transportation | Leave a Comment »
Posted by luxuryasiahome on May 31, 2008
International ratings agency, Moody’s, said it has no immediate plans to review its sovereign credit rating for Singapore as the country has strong credit fundamentals, including robust external assets.
Singapore has the highest triple-A sovereign rating from Moody’s, and this is likely to remain so for the next 12 to 18 months.
Last year, Moody’s upgraded the rating for six Asian economies – China, Indonesia, Korea, Japan, Hong Kong and Macau. But so far, there have been no such revisions this year, given the slow economic outlook.
Moody’s said it is keeping a close eye on rising inflation in Asia.
Thomas Byrne, senior vice president of Sovereign Risk Unit at Moody’s Singapore, said: “If inflation is a temporary phenomenon, then it won’t have any effect on the ratings.
“However, if it’s persistent and it starts to undermine the government’s fiscal position, and if it leads to a loss of confidence and therefore external investors or even domestic investors are less willing to finance government budget deficits, then that perhaps would have rating implications if it were strong enough.
“Another factor – which we see elsewhere and not so much in East Asia – is the political instability that comes from higher inflation. There have been food riots in Egypt and also in some other countries in South Asia.
“But we haven’t seen any serious political side effects of high inflation in Asia. It’s something we’re monitoring, but we haven’t seen it yet.”
Inflation in Vietnam hit more than 25 percent in May and Fitch has already lowered its outlook for the country’s sovereign rating from ’stable’ to ‘negative’.
Moody’s said it is still looking at its numbers and, for now, it maintains a positive outlook for Vietnam.
But other economies in the region are also seeing inflationary pressures and economists said rising prices may threaten the likes of Indonesia and the Philippines.
The Philippine government has been seeking to balance its budget by this financial year, but rising inflation could derail that target, which could have a bearing on its sovereign ratings. – CNA/so
Source : Channel NewsAsia – 30 May 2008
Posted in General, Singapore Economy | Tagged: Inflation, Moody's, Singapore Sovereign Credit | Leave a Comment »
WHAT A PITY: ‘This would have involved an assured distinct identity for Raffles Hotel as a flagship for Singapore in the international hospitality industry and a rejuvenation of the hotel.’ – SPOKESMAN FOR THE CONSORTIUM, expressing disappointment over the failure to buy Raffles Hotel (above) — ST FILE PHOTO
