EM ASIA CREDIT: SK Telecom: Cyberattack impact ongoing
(SKM, A3/A-/A-)
"X-S&PGRBulletin:SKT Operational Risks Remain From Cyberattack " - BBG
In summary, S&P noted after market close yesterday the ongoing impact on the business following the cyberattack, which the CEO stated was the worst hack in history. The cyber-attack on the 18th April allowed hackers access to 23 servers and millions of subscribers data. According to Bloomberg/Yonhap, executives are now under police investigations. S&P expects leverage to rise, as subscribers leave the company and costs mount, with debt to EBITDA around 2.0x in 2025 and 2026, versus 1.7x - 1.8x. Neutral for spreads.
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CHINA: Central Bank Withdraws Liquidity via OMO (updated)
- The PBOC issued CNY405bn of 7-day reverser repo at 1.5% during this morning’s operations.
- Total maturities today CNY
- Net liquidity withdrawal CNY682bn.
- The PBOC monitors and maintains liquidity in the interbank system through the issuance of reverse repo.
- The CFETS Pledged Repo Deposit Institutions 7 Day Weighted Average Index is at 1.60% versus close on 30/4 at 1.79%.
- The China Overnight Interbank repo rate is at 1.72%, versus close on 30/4 of 1.78%
- The China 7-day Interbank repo rate is at 1.60%, versus close on 30/4 of 1.95%
CHINA: Central Bank Withdraws Liquidity via OMO
- The PBOC issued CNY405bn of 7-day reverser repo at 1.5% during this morning’s operations.
- Total maturities today CNY1,087bn
- Net liquidity withdrawal CNY682bn.
- The PBOC monitors and maintains liquidity in the interbank system through the issuance of reverse repo.
- The CFETS Pledged Repo Deposit Institutions 7 Day Weighted Average Index is at 1.60% versus close on 30/4 at 1.79%.
- The China Overnight Interbank repo rate is at 1.72%, versus close on 30/4 of 1.78%
- The China 7-day Interbank repo rate is at 1.60%, versus close on 30/4 of 1.95%
NEW ZEALAND: Higher Unemployment Rate, Could Be Signs Of Stabilisation
Q1 labour market data are released on Wednesday and forecasts are in a narrow range across the major components. Bloomberg consensus expects the unemployment rate to rise 0.2pp to 5.3%, above the RBNZ’s 5.2% and would be the highest since Q4 2016, and employment to rise 0.1% q/q, signalling a stabilisation in the labour market. Private wages are expected to rise 0.5% q/q, slightly slower than Q4. Outcomes close to these are unlikely to alter the RBNZ’s probable 25bp rate cut on May 28.
- The RBNZ forecast flat Q1 employment in its February staff forecasts resulting in the annual rate down 0.6% y/y. Consensus is slightly higher projecting a 0.1% q/q increase (forecast range 0.0% to +0.2% q/q) with the annual rate down 0.5%. Of the major local banks ANZ and Kiwibank are in line with consensus, while ASB and BNZ expect a flat quarterly outcome.
- Unemployment rate expectations are between 5% and 5.3%. ANZ, BNZ, Kiwibank and Westpac are all at consensus’ 5.3%, while ASB is slightly lower at 5.2%. A rise is expected due to an increase in the labour supply.
- Private wages rose 0.6% q/q in Q4 and forecasts for Q1 range from 0.4% to 0.6%. The RBNZ expected 0.6% again in February. ASB, ANZ and BNZ are in line with consensus at 0.5%, while Westpac is below at 0.4% and Kiwibank above at 0.6%. Lower inflation should mean less pressure on wage growth as well as more spare capacity in the labour market.
