S'pore bond market frenzy distorting credit costs: S&P
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CORPORATE bond offerings by some of Singapore's biggest companies are drawing such strong demand from investors that they are artificially lowering borrowing costs for weaker borrowers, according to S&P Global Ratings.
Recent offerings from issuers such as state investment company Temasek Holdings Pte, port operator PSA Corp and electricity distributor Singapore Power Ltd were "well over- subscribed" amid heightened threat of non-payments by riskier borrowers across South-east Asia, analysts Bertrand Jabouley and Xavier Jean wrote in an e-mail interview. Banks have also been supporting some companies in the troubled oil services industry, easing default pressure, it said.
