Credit rating agencies (CRAs) were operating in a fast-moving environment in 2025, with a series of tariff announcements by US President Donald Trump altering the outlook for economic growth, supply chains, and corporate profitability around the world.

The year also saw the Trump administration moving to halt or delay offshore wind construction permits, sending shockwaves across the global wind power sector.

However, in spite of all the background noise, high-yield default rates remained fairly steady, and the number of global defaults actually fell – though there were some very large individual credit events.

Spending on infrastructure continued to grow globally, notably in power generation projects. And in the United Kingdom, debt financing for a new nuclear power station points the way forward for the return of nuclear energy in many other countries.

Debt financing for the rapid development of data centres has presented a particular challenge for rating agencies. Capital expenditures in this sector in 2025 were estimated at over US$300 billion, and CRAs had to assess whether individual data centre operators would be able to create sustainable returns, or whether some might be left behind if the impact of artificial intelligence (AI) turns out to be overhyped.

Credit rating agencies were themselves facing the challenge of adopting generative AI, while preserving the integrity of their risk modelling.

The past year also saw providers of environmental, social and governance (ESG) scores preparing for the European Union ESG Ratings Regulation, a new binding regulatory framework which will come into effect from July 2026. ESG scores will be more comparable, methodologies more transparent, and providers will be directly supervised by the European Securities and Markets Authority.

Amid all the upheavals in the global economic landscape, CRAs have conscientiously performed their crucial role of maintaining financial stability, balancing the need for rigorous risk assessment with the responsibility to support liquidity and growth.

At The Asset Triple A Rating Agency of the Year Awards 2026, we recognize their outstanding contributions in maintaining this delicate balance while responding to the evolving needs and conditions of issuers and investors.

To start, the Rating Agency of the Year Award in the Covered Bond category goes to Moody’s Ratings, which has a long-established position as one of the dominant rating agencies for covered bonds. In addition to repeat offerings out of long-established covered bond programmes, the agency was also involved in a series of debut and innovative offerings last year. Moody's also prepared second-party opinions (SPOs) on covered bond programmes complying with green or social frameworks.

Moody’s publishes a steady flow of thematic research on sovereign-level developments, the banking sector in each jurisdiction, and performance trends in mortgage origination, house prices, and arrears

In November, MBH Mortgage Bank from Hungary completed its first international covered bond issuance, raising €100 million (US$119 million). Rated A1 by Moodys, the deal attracted exceptionally strong demand from 60 institutional investors. Moody’s has also published detailed research explaining the Hungarian covered bond legislation, since individual EU countries still have minor differences, while working within the EU Covered Bond Regulation.

In Germany, one of the major covered bond jurisdictions, Moody’s rated a number of debut offerings in 2025. BayernLB subsidiary DKB sold its first-ever social covered bond, while Kreissparkasse Koln launched a debut green covered bond. DZ Bank subsidiary Schwabisch Hall also sold a green covered bond in October. And out of Italy, Banco BPM offered its first-ever social covered bond in February.

Moody’s has likewise published thematic research on the use of blockchain technology by covered bond issuers. In November, it gave an Aaa rating to a €50 million offering from DekaBank Deutsche Girozentrale, registered on the blockchain under the German Electronic Securities Act rather than using a central securities depository.

Moody’s publishes a steady flow of thematic research on sovereign-level developments, the banking sector in each jurisdiction, and performance trends in mortgage origination, house prices, and arrears. The new EU Covered Bond Directive is now well-established, but Moody’s has provided regular updates on legislative issues in the EU, such as the potential implications for some small and medium-sized banks of the Crisis Management and Deposit Insurance framework.

Structured finance

The Structured Finance category award goes to Fitch Ratings, which has a particularly strong presence in structured finance, and covers many of the largest programmes in the auto asset-backed securities (auto ABS), residential mortgage-backed securities (RMBS), and commercial mortgage- backed securities (CMBS) segments.

The commercial real estate market has been experiencing severe difficulties in the United States and Europe in recent years, with the pandemic ushering in the work-from-home era, which has reduced demand for office space.

Fitch did not rate the most troubled CMBS deals dating back to the market peak in 2018 and 2020, and even took the step of publishing research setting out some of its concerns about the structure of certain transactions

Fitch did not rate the most troubled CMBS deals dating back to the market peak in 2018 and 2020, and even took the step of publishing research setting out some of its concerns about the structure of certain transactions. These concerns were subsequently proven correct, as the CMBS market has experienced losses on several Triple A tranches for the first time since the 2008 financial crisis.

There are now some small signs of recovery in the commercial real estate (CRE) market in the US and Europe, as high-quality office space fills up and locations such as the Canary Wharf business district in London are staging a comeback. Fitch publishes an EMEA Commercial Real Estate Long Term Values Monitor, which closely tracks market developments both in major and secondary cities.

New CMBS deal activity is on the increase again. In the US, Fitch in December rated a CMBS offering backed by a US$700 million loan secured on an energy-efficient, 57-storey office tower on North Wacker, Chicago West Loop, built in 2020. Against the background of a bifurcated market favouring top-quality buildings and deteriorating asset performance for older buildings in less desirable locations, Fitch noted the property’s trophy-quality asset status and strong, diversified tenant profile. It rated the senior tranche of CHI Commercial Mortgage Trust 2015- 110W AAAs.

Fitch is also a strong presence in RMBS and auto ABS segments. It publishes quarterly European and US Auto ABS Performance Monitors. In Europe, auto loan delinquencies are still rising, and Fitch has also highlighted falling residual values, where its assessment is that the used car price trough has not been reached yet.

The winner in the Private Credit/US Private Placement category is Morningstar DBRS. The private credit segment has been a priority for Morningstar DBRS in recent years, and it has been winning business at a time when the volume of deals has surged. Historically, there has been a private credit focus on middle-market lending to SMEs, but there is also a growing number of large transactions structured to be investment-grade.

DBRS blends elements from its CMBS and ABS criteria, treating data centres as commercial real estate while acknowledging their tech-intensive nature

The data centre market is one segment attracting large volumes of private credit. DBRS blends elements from its CMBS and ABS criteria, treating data centres as commercial real estate while acknowledging their tech-intensive nature. For example, it rated a deal from Las Vegas-based Switch in October 2025. Data centres are also turning to the US private placement (USPP) market, and though these private ratings are not disclosed, Morningstar DBRS is very active in this space.

Sports stadium financing via the USPP market is another global growth area. Morningstar DBRS has published a regular series of thematic research pieces, and has made presentations at conferences alongside major investment banks active in this segment.

USPP offerings are generally assumed to have an investment-grade credit profile, and typically use a single rating agency to provide a rating equivalent to the National Association of Insurance Commissioners (NAIC) scale. However, the Olympique Lyonnais stadium financing in late 2023 did have public ratings, including from DBRS. There was a downgrade during 2025, after football financial watchdog DNGN decided to relegate Lyon to Ligue 2 – a decision that was subsequently reversed. The situation illustrates the challenge of rating European football club deals – whereas US sports are more stable since they do not have relegation systems. The firm also has a public rating on FC Barcelona, which it moved from stable to positive in June 2025, citing better on-field performance and stadium revenues.

Issuers do sometimes highlight their private ratings, as was the case with the huge €5.8 billion debt refinancing for French fibre infrastructure player XpFibre in late 2024. This included dollar and euro private placements, which were explicitly structured to achieve private investment-grade ratings from both DBRS and S&P Global Ratings.

US private placement market

For the USPP market, 2025 was another boom year. Morningstar DBRS serves this investor base with access to initial reports and ongoing monitoring accessible via its Private Ratings Hub, a secured platform where deals can be viewed by a limited number of investors.

The award in the infrastructure category goes to S&P Global, which has been a traditional powerhouse in global infrastructure ratings, and 2025 saw another series of innovative financings rated by the firm. One of the most high-profile came in November, when S&P Global awarded a BBB- rating to the £36.6 billion (US$50 billion) Her Majesty’s Government term facility from the National Wealth Fund.

The debt will support the developers in the design, build and operation phases of a 3.2-gigawatt nuclear power plant in Suffolk, on the east coast of England. Sizewell C is the first nuclear power project to be developed under the regulated asset base model, on which S&P Global has provided extensive research.

The investment-grade rating reflects the complex nature of nuclear construction, availablity of committed funding even in a downside scenario, and a supportive regulatory model that generates predictable revenue. Debt investors are going to need clarity as various nuclear projects proceed, with each government using a different model. In this regard, S&P Global published a research FAQ, “How S&P Global Ratings applies its project finance methodology to nuclear power projects.”

Elsewhere in the energy sector, S&P Global rates the major sponsors of offshore wind projects, such as SSE Renewables, Equinor, and RWE, rather than standalone projects. In November, it affirmed the BBB+ rating of SSE.

It has also published thematic research on offshore wind, which saw a particularly challenging year, with projects delayed or cancelled in the United States as the Trump administration pushed back against the green agenda. Orsted has experienced downgrades but carried out a huge rights issue to bolster its equity position. It has also brought in co-investors such as Apollo on the Hornsea 3 project in the UK, and Cathay Life Insurance on Changhua 2 in Taiwan. In addition to rating reports, S&P Global has tracked all these developments with regular articles, including “Blown Off Course: The challenge of predicting offshore wind earnings,” which was published in October.

Global airports present another growth area for infrastructure. S&P Global rates Heathrow Funding Limited and published a report in April titled “Heathrow’s expansion could impair its credit profile.” It also closely tracks the booming data centre market, and in November published a research piece titled “The Data Center boom is bringing both growth and risks for US investor-owned utilities.”

Sustainable Fitch ESG Scores measure the extent to which an entity’s business activities make a positive or negative contribution towards environmental or social goals, as well as the effectiveness of governance 

The award for factoring ESG into credit goes to Fitch. New regulations concerning ESG scores (often referred to as ESG ratings) will come into force in the EU in mid-2026, requiring providers to be more transparent about their methodologies, and make ratings more comparable.

Sustainable Fitch ESG Scores measure the extent to which an entity’s business activities make a positive or negative contribution towards environmental or social goals, as well as the effectiveness of governance. Fitch also offers SPOs confirming that an issuer framework complies with accepted market principles, such as the ICMA Green Bond framework.

But ESG factors are not always relevant to creditworthiness. In recent years, this has brought some confusion to investors, as ESG scores have often appeared alongside credit ratings on the front sheet of initial ratings and rating actions. The Fitch approach was ahead of some of the competition in explaining with clarity how ESG fits into the process. It publishes ESG Relevance Scores, which are not inputs in the rating process – they are an observation on the relevance and materiality of ESG factors in the rating decision.

One recent governance example involved New Fortress Energy (NFE), which has been struggling with its high debt burden. In August, Nasdaq issued a non-compliance order because NFE was late in filing its second-quarter 10-Q report. Fitch responded by assigning a score of 5 for governance, which means that investors should take into account a high relevance for governance when looking at the credit rating. The credit rating itself was downgraded several times during 2025.

ESG regulatory trend

Sustainable Fitch research analysts also provide in-depth analyses of significant ESG regulatory trends emerging globally. This is of interest to debt investors, as there is strong pushback against the green agenda in the US market, while in the EU, a raft of legislation is currently working its way through Parliament via the so-called Omnibus package.

The High Yield category award goes to S&P Global, which has traditionally been one of the strongest CRAs in what it calls speculative grade. The S&P Global forecasts of speculative-grade default trends are closely followed by institutional investors active in this space. Recent research from S&P Global shows that last year global corporate defaults declined for a third consecutive year, falling to 117 in 2025 from 145 in 2024. This 19% global reduction was driven primarily by the US, where defaults dropped by nearly 25% in 2025, to 73 from 97. While Europe recorded only 25% of defaults, it generated 44% of the global defaulted debt volume, totalling US$61.8 billion.

The S&P Global forecasts of speculative-grade default trends are closely followed by institutional investors active in this space. Recent research from S&P Global shows that last year global corporate defaults declined for a third consecutive year, falling to 117 in 2025 from 145 in 2024

S&P Global forecasts the US trailing 12-month speculative-grade corporate default rate will be 4.0% by September 2026, slightly up from the 3.7% in December 2025. The optimistic scenario foresees a decline to around 3.0%, while the pessimistic case is for the rate to rise to roughly 5.5% if trade tensions resurface, policy uncertainty increases, or financing conditions tighten and reapply pressure on weaker issuers. In Europe, where the default rate increased to 4.0% in December, it expects a gradual decline to 3.25% by September 2026.

S&P Global has also published thematic research on the growing share of distressed exchanges in defaults. In 2025, distressed exchanges hit a record high and accounted for 55% of all defaults (64 of 117 cases). For the lowest-rated issuers, these out-of-court restructurings have become the primary mechanism to manage liquidity, offering a way to reduce all-in borrowing costs or extend maturities without the value destruction of a formal bankruptcy.

However, S&P Global notes that while distressed exchanges typically offer higher immediate recovery rates than other default types, they often function as a temporary liquidity bridge rather than a permanent structural fix. Persistent credit stress was also visible in the elevated count of redefaults, which rose to 48 cases in 2025 (from 42 in 2024), representing about 41% of all defaults. This means that nearly 41% of all 2025 defaults involved issuers that had already defaulted at least once before. The combination of the record reliance on distressed exchanges and the rising redefault count highlights a growing cohort of persistently distressed issuers that remain unable to achieve long-term balance-sheet stability, despite repeated attempts at out-of-court restructurings.

A good year for CRAs in APAC

Over in Asia-Pacific, it has been a good year for the global rating agencies on the back of the higher volume of debt issuances across the region that require rating opinions. Market volatility and heightened geopolitical risks have also prompted investors to seek rating feedback to help them in their investment decision-making process.

There were a number of notable rating actions in the sovereign space in 2025. S&P Global announced in August an upgrade in India’s rating from BBB- to BBB – the first upgrade in 18 years. It cited several factors in doing so, including India’s buoyant and dynamic economic growth and the government’s sustained commitment to fiscal consolidation. It also highlighted the improved quality of public spending, particularly on capital expenditure and infrastructure, as well as the strong corporate, financial, and external balance sheets.

Fitch Ratings has rated India at BBB- since 2006, and affirmed it in August 2025 with a stable outlook. Fitch says the rating is supported by the country’s robust growth and solid external finances. Moody’s Ratings has had a Baa3 rating in place for India since June 2020 and affirmed it in September 2025, also with a stable outlook. It says the rating affirmation and stable outlook reflect its view that India’s prevailing credit strengths, including its large, fast-growing economy, sound external position, and stable domestic financing base for ongoing fiscal deficits will be sustained.

Investors were apparently not bothered by China's rating downgrade as demonstrated by the huge demand for China’s US dollar and euro bonds in November 

In early April, Fitch announced it downgraded China’s rating from A+ to A. The rating action reflects its expectations of a continued weakening of China’s public finances and a rapidly rising public debt trajectory during the country’s economic transition. It points out that sustained fiscal stimulus will be deployed to support growth, amid subdued domestic demand, rising tariffs, and deflationary pressures. This support, along with a structural erosion in the revenue base, will likely keep fiscal deficits high, Fitch says.

However, investors were apparently not bothered by the rating downgrade as demonstrated by the huge demand for China’s US dollar and euro bonds in November. China’s Ministry of Finance garnered demand of over €100 billion when it sold €4 billion worth of bonds, which followed another oversubscribed US dollar notes issuance of US$4 billion just two weeks earlier that attracted an order book of US$118.2 billion – illustrating investor confidence in China’s prospects.

In May, Moody’s affirmed China’s A1 rating and maintained the negative outlook. The rating affirmation takes into account the country’s large, dynamic economy and capacity for innovation, even as it expects the potential growth to slow towards the 3.5% to 4% level by 2030. The negative outlook is driven by risks that trade tensions between China and its major trading partners could have a long-lasting negative effect on its credit profile.

S&P Global Ratings also affirmed in August China’s rating at A+ long-term and A-1 short-term foreign and local currency sovereign credit ratings with stable outlook. It says the strong fiscal stimulus will help keep economic growth resilient amid continued headwinds from the weak property sector and new pressures on external trade.

The three rating agencies upgraded Pakistan’s credit in 2025 – Fitch (from CCC+ to B-), S&P Global (from CCC+ to B-) and Moody’s (from Caa2 to Caa1) – on the back of improved foreign exchange reserves, stabilized external liquidity, and the ability to sustain progress on narrowing the budget deficits and the reforms under the IMF programme.

In October, S&P Global lifted Mongolia's long-term foreign and local currency sovereign credit ratings to BB- from B+, marking the country's highest rating in 13 years with a stable outlook. The upgrade is driven by strong fiscal performance, three consecutive years of budget surpluses, and reduced debt-to-GDP ratios. 

Moody’s likewise upgraded Mongolia’s credit rating in October from B2 to B1with a stable outlook.

S&P Global also raised in September Sri Lanka's foreign currency sovereign credit ratings to CCC+/C from SD/SD (Selective Default) with a stable outlook - the first upgrade since the 2022 crisis. This rating action came on the back of the progress in restructuring its commercial debt, economic recovery and the IMF reform. 

S&P Global’s rating call on India definitely resonated in 2025, plus its other sovereign rating actions enabled it to gain recognition and was chosen to receive the Sovereign Rating Agency of the Year award.

Repeat winner

Sustainable Fitch is another repeat winner as ESG Rating Agency of the Year for the seventh consecutive year. It has launched the coverage of the Asia-Pacific (APAC) GSSS (green, social, sustainability and sustainability-linked) market, evaluating labelled bond issuances of over US$250 million and the issuing entities. As of September 30 2025, Sustainable Fitch has assigned scores or ratings to more than 100 APAC entities and more than 800 APAC GSSS bonds.

Sustainable Fitch’s ESG ratings seek to provide data-driven analysis, complemented by qualitative insights from experienced ESG specialists, allowing market participants to have a consistent evaluation of ESG factors that is comparable across different sectors 

Answering the market’s call to address exaggerated data and greenwashing, Sustainable Fitch’s ESG ratings seek to provide data-driven analysis, complemented by qualitative insights from experienced ESG specialists, allowing market participants to have a consistent evaluation of ESG factors that is comparable across different sectors.

The Sustainable Markets Initiative (SMI) Energy Transition Task Force published a transition framework in support of the global progress towards net-zero greenhouse gas (GHG) emissions, by recognizing the activities and impact of companies to reduce and remove emissions, as well as by those accelerating the development of low-carbon solutions at scale. Sustainable Fitch works with SMI to provide an independent transition assessment to mobilize capital into transitioning companies and accelerate global progress to net zero.

During the year, Sustainable Fitch assigned ESG entity ratings and entity scores to a number of companies. In January 2025, it assigned an ESG entity rating of 2 and an entity score of 63 to PowerChina International Group and an ESG entity rating of 2 and entity score of 81 to Trina Solar – both indicating good overall ESG profile and reflecting the strong integration of ESG considerations into their business strategy and management.

Sustainable Fitch views positively the fact that PowerChina International sets targets to reduce GHG emissions and improve energy efficiency by 2030. It says its comprehensive human and labour rights policies support its good social profile. Its track record of zero social incidents over the past three years also supports the rating.

On the other hand, Sustainable Fitch says Trina Solar’s core business activities significantly contribute to climate change mitigation and clean energy transition. These contributions are also widely recognized by international science-based taxonomies, such as the EU taxonomy – the key rating driver for Trina Solar’s good ESG profile.

In September, Sustainable Fitch published CSSC (Hong Kong) Shipping Company entity rating of 3 and increased its entity score from 49 to 55, while in December, it published GCL Technology Holdings’ entity rating of 2 and an entity score of 70.

Sustainable Fitch also provided SPOs to several corporates as well as sovereigns and supranationals’ sustainability finance frameworks in 2025, including the green and blue finance framework for Henan Water Conservancy Investment Group, SGS (social, green and sustainability) finance framework for Hong Kong Mortgage Corporation, and the green finance framework for China Energy Overseas Investment Company. It also provided the SPO for the sustainable government securities framework for Indonesia, the sustainable finance framework for Pakistan, and the social bond framework for International Finance Corporation.

Sustainable types of financing deals

The Sustainable Finance Rating Agency of the Year Award is once again given to Moody’s as it rated several sustainable types of financing deals on a sole basis in 2025. These included the US$300 million sustainability-linked loan financing bond in November for Agricultural Bank of China (Singapore), the green bonds by China Construction Bank (London) in September amounting to 2 billion yuan (US$280 million) and US$1.5 billion, the carbon neutrality-themed international green notes in May amounting to US$1 billion by ICBC (Hong Kong) and 3 billion yuan by ICBC (Dubai). ICBC (Singapore) raised its own carbon neutrality-themed international green notes in August amounting to 3.5 billion yuan, also solely rated by Moody’s.

Other deals from China rated only by Moody’s included the subordinated guaranteed perpetual green securities by China Huaneng Group in November amounting to US$1 billion, the US$700 million floating rate green notes priced in May by CMB Financial Leasing, and the US$600 million sustainability bond in May by Shanghai Construction Group.

In South Korea, Moody’s solely rated the US$500 million green bond raised in July in the Formosa market by Korea Hydro & Nuclear Power and that of Korea Water Resources Corporation in May amounting to US$300 million.

Moody’s also rated other sustainability-type transactions together with the other rating agencies such as the US$600 million green bond in October by KEB Hana, US$600 million social bond in July by NongHyup Bank, US$300 million blue bond in April by Korea Ocean Business Corporation, US$700 million green bond in May by Posco, US$800 million social bond in January by Korea Housing Finance Corporation, and US$1 billion green bond in March by BoCom Financial Leasing.

Fitch commands the largest market shares for the local government financing vehicle (LGFV) sector in 2025 and is very active in promoting the development of China’s international public finance 

Fitch continued to demonstrate its strong coverage of the public finance sector across the region on the way to retaining the Public Finance Rating Agency of the Year honours. It commands the largest market shares for the local government financing vehicle (LGFV) sector in 2025 and is very active in promoting the development of China’s international public finance. It has published various types of research to disseminate Fitch’s insights on trending market topics, including the quarterly report of China’s public finance monitor, and in-depth research and reports such as the China Local and Regional Government Handbook.

Fitch is the only credit rating agency covering all six public ratings in Indian public finance and in Oceania, it boosted its market coverage on local government and public fundings in New Zealand and Australia. It assigned first-time issuer default ratings (IDRs) to all four newly-rated councils in New Zealand.

Fitch solely rated the 50 trillion rupiah (US$3 billion) patriot bonds issued in October by Danantara Investment Management of Indonesia, with part of the proceeds earmarked for renewable energy and waste-to-energy projects. From China, it rated on a sole basis the US$400 million green bond issued in January by Henan Railway Construction & Investment Group and the US$500 million blue bond printed in August by Henan Water Conservancy – the first offshore blue bond from Henan province.

Fitch has been the agency of choice providing comprehensive rating services to Chinese public finance issuers, covering entity ratings, issuance ratings and SPOs. These include the likes of Zhaoqing Guolian (US$300 million), Zhengzhou Metro (US$500 million), Chengdu Communications (US$600 million), Huzhou City Investment (US$300 million), Cixi State-Owned Assets (US$300 million), Hubei United Development (US$300 million), Ganzhou Development (US$300 million), and Shandong Hi-Speed Group (US$500 million).

Dim sum bond issuers also prefer Fitch for their offshore CNY note issuances such as Zhengzhou Urban Development (2 billion yuan), Guangzhou Metro (4.9 billion yuan), Hangzhou Fuyang Transportation (774 million yuan) and Zhuhai Huafa (1.4 billion yuan).

Market-defining FI ratings

Riding on the strength of its franchise in rating several of the banks’ sustainable types of financing on a sole basis, Moody’s retains the award for Financial Institution (FI) Rating Agency of the Year for the ninth year in a row.

Apart from market-defining sole ratings on several thematic bonds issued by banks, Moody’s also solely rated the debut bond by Affin Bank of Malaysia, arranged in May and amounting to US$300 million, as well as the US$500 million floating rate note (FRN) issued by Maybank in November. In other FI transactions, Moody’s, along with other rating agencies, rated the bond offerings by Bangkok Bank (US$1.1 billion), Bank Mandiri (US$800 million), Bank of East Asia (750 million yuan), Industrial Bank of Korea (US$1 billion), KEB Hana Bank (US$600 million) and the issuances of DBS in euro and US-dollar covered bond markets.

During the year, Moody’s initiated rating upgrades on DBS Taiwan (from A2 to A1), Philippine National Bank (from Baa3 to Baa2), HDBank (from B1 to Ba3) and YES Bank (from Ba3 to Ba2). In the meantime, it downgraded the rating of Union Bank of the Philippines (from Baa2 to Baa3) due to the deterioration in its asset quality, and the long term/short-term foreign currency and local currency deposit ratings of Dah Sing Bank from A2/P-1 to A3/P2 due to the bank's asset quality deterioration as a result of the weak commercial real estate sector in Hong Kong and mainland China.

Fitch is again selected to receive the Non-Bank Financial Institution (NBFI) Rating Agency of the Year award for the second year in a row. Fitch has had its fair share of solely rated bond deals in the NBFI sector, such as the 5.3 billion yuan issuance in July by China Cinda Management, the US$400 million bond also in July by China Securities (International) Finance, and the US$500 million tier 2 capital sustainability bond printed in November by CDB Financial Leasing.

Other NBFI deals rated by Fitch in 2025 included those for Hyundai Capital (US$500 million), IIFL Finance (US$425 million equivalent), BoCom Financial Leasing (US$1.14 billion equivalent), Tong Yang Life (US$500 million), Hanwha Life (US$1 billion), Fubon Life (US$650 million), and Muangthai Capital (US$350 million).

Fitch assigned first-time ratings to a number of NBFIs in 2025, such as those for CMBC International (BBB-), Danantara Investment (AAAidn), Dongxing Securities (Hong Kong) Financial Holdings (BBB-), Generali China (A-), L&T Finance (BBB-), KB Bukopin Finance (AAidn), and National Bank for Financing Infrastructure and Development (BBB-).

Meanwhile, Fitch upgraded the rating of a number of NBFIs such as China Great Wall Asset Management (from BBB- to BBB), Guangzhou Finance Holdings (from BBB+ to A-), Mianyang Investment Holding (from BB to BBB-), Muthoot Finance (from BB to BB+), Shriram Finance (from BB to BB+), and Urtrust Insurance (from BBB to BBB+).

Strong corporate bond issuances

It has been a strong year for corporate bond issuances as reflected in the series of rating actions done during 2025. Moody’s beat the competition to retain the Corporate Rating Agency of the Year accolade. It rated a number of first-time corporate issuers, including KT& Corporation of Korea (A3), Sinochem Corporation of China (A3), and Vinhomes Joint Stock Company of Vietnam (B1). It solely rated, among others, the US$400 million bond in May by Korea Railroad Corporation, the US$500 million bond in August by Swire Pacific, the US$1 billion green perpetual securities launched in November by China Huaneng Group, and the US$1.2 billion subordinated perpetual securities issued in December by China Minmetals Corporation.

It upgraded the rating of several corporates, including Meituan (from Baa2 to Baa1), Guangxi Communications (from Baa3 to Baa2), Shanghai Electric (from Baa2 to Baa1), and SK hynix (from Baa2 to Baa1).

On the other hand, Moody’s downgraded several corporates for various reasons such as weakening credit profile with deteriorating asset quality, visible deterioration in earnings, elevated financial leverage, and slower-than-expected earnings recovery. Tough industry operating environment that impacts the companies’ debt levels and their leverage also drives the rating downgrades in 2025.

Champion REIT saw its rating cut from Baa2 to Baa3, China Tourism Group (from A3 to Baa1), Genting Berhad and Genting Overseas Holdings (both from Baa2 to Baa3), Genting Singapore (from A3 to Baa1), Hanwha TotalEnergies (from Baa2 to Baa3), Huaxin Cement (from Baa1 to Baa2), LG Chem and LG Energy Solution (both from Baa1 to Baa2), Shandong Energy and Yankuang Energy (both from Ba1 to Ba2) and Vistra Holdings (from B1 to B2).

The issuance of investment-grade bonds was one of the drivers of the higher G3 bond volume in Asia-Pacific, outside of Japan and Australasia, in 2025 and Moody’s manifested a strong presence in this rating category, taking the honours away from the competition to win the Investment Grade Rating Agency of the Year award. It solely rated top-tier credit bond transactions by corporates during the year, such as the US$1 billion subordinated guaranteed perpetual green securities by China Huaneng Group in November, the US$500 million Formosa green bond by Korea Hydro & Nuclear Power in July, the US$400 million fixed rate bond by Korea Railroad Corporation in May, and the 3.5 billion yuan green notes by Swire Properties in July.

In the FI and NBFI categories, it solely rated the bond offerings of the investment-grade issuers such as the US$300 million debut bond by Affin Bank in May, the US$500 million FRNs by Maybank in November, the S$800 million subordinated dated securities by AIA Group in June, the US$300 million senior unsecured fixed rate notes by China Ping An Insurance Overseas (Holdings) in September, the 2.3 billion yuan fixed rate guaranteed notes by Guotai Haitong Securities in August, the US$300 million fixed rate notes by KB Capital in September, and the 1.25 billion yuan fixed rate notes by PSA Treasury in May.

Moody’s assigned first-time ratings to a number of investment grade issuers, such as KT&G Corporation (A3), Sinochem Corporation (A3), Clifford Capital Holdings (Aa1), Shin Kong Life Insurance (Baa2), GF Securities (Baa2/P-2), China Minsheng Banking Corporation (Baa3), Shinhan Finance (Baa3), National Bank for Financing Infrastructure and Development (Baa3), and Varanasi Aurangabad NH-2 Tollway (Baa3).

High yield and structured finance

The High Yield Rating Agency of the Year award is given to Moody’s. It was involved in the two bond issuances by Vedanta Resources in 2025, while the two other rating agencies were rotated, so to speak. Moody’s rated Vedanta’s US$1.1 billion bond deal in January with S&P Global, and the US$500 million bond offering in September with Fitch. Moody’s likewise rated Greenko Energy Holdings’ US$1 billion bond issued in March and the US$300 million bond launched by Li & Fung in August. The Li & Fung deal marked the company’s return to the US dollar bond market after a five-year hiatus and set a new benchmark for other quality name issuers in the Asia high-yield sector.

Moody’s downgraded the rating of China Vanke Company four times in 2025 – from B1 in January to Ca in December on the back of weak liquidity following its missed payment and its expectation of weak recovery prospects for the company's creditors 

Moody’s downgraded the rating of China Vanke Company four times in 2025 – from B1 in January to Ca in December on the back of weak liquidity following its missed payment and its expectation of weak recovery prospects for the company's creditors

Moody’s downgraded the rating of China Vanke Company four times in 2025 – from B1 in January to Ca in December on the back of weak liquidity following its missed payment and its expectation of weak recovery prospects for the company's creditors. On the other hand, it upgraded the ratings of other high-yield issuers such as Bayan Resources (from Ba2 to Ba1), Delhi International Airport (from B1 to Ba3), Grab (from B1 to Ba3), Hyderabad Airport (from Ba2 to Ba1), Medco Energi (from B1 to Ba3), Mongolian Mining Corporation (from B3 to B2), and West China Cement (from Caa1 to B3).

The Structured Finance Rating Agency of the Year award is also given to Moody’s. It solely rated the US$450.5 million infrastructure loan-backed securities by Hong Kong Mortgage Corporation issued in October under Bauhinia ILBS 3 Limited and the US$527 million infrastructure asset-backed securities (IABS) by Clifford Capital issued in March under Bayfront Infrastructure Capital VI Pte Ltd. It was also involved in another IABS transaction by Clifford Capital amounting to US$705.5 million issued in November under Bayfront IABS VII Pte Ltd.

Moody’s was the international rating agency involved in the 3.8 billion yuan Driver China Sixteen auto loan securitization by Volkswagen Finance (China) Company priced in May, and in the 3 billion yuan VINZ 2025-1 retail auto loan securitization by Dongfeng Nissan Auto Finance Company printed in April.

Moody’s also rated the covered bond issuances by banks, including the €850 million and £750 million covered bonds by UOB both priced in December, the €600 million by Bank of Queensland printed in July, the €1.5 billion by National Australia Bank priced in August, the €500 million by Macquarie Bank priced in February, and the €1.25 billion and US$2 billion covered bonds by DBS priced in June and August, respectively.

By country, the Credit Rating Information and Services (CRISL) is again chosen as the Rating Agency of the Year in Bangladesh. It finalized a total of 9,530 deals in the first 11 months of 2025 amid a challenging market environment as economic activity in the country was affected by political unrest, tension in the Middle East, and volatility in the foreign exchange and commodities markets. Despite these, the country recorded steady loan growth and the overall ratings during January-November marginally increased compared with the same period of 2024.

China Lianhe Credit Rating Company is voted as the Rating Agency of the Year in China. It continues to maintain very transparent methodologies, which is welcomed by investors. Compared to other local peers, it is regarded as more conservative and avoids overrating Chinese issuers. Its ratings also have tighter notches with those from international rating agencies.

CSPI Credit Ratings Company is again the recipient of the Public Finance Rating Agency of the Year award in China. It has assigned issuer ratings to 34 LGFV entities and rated several municipal bond issuances in Shenzhen and in the provinces of Hainan and Guangdong. It undertook rating actions in 2025, upgrading, among others, the ratings of Ji’an Chengtou Holding Group (from BBB to BBB+), Suining Investment Group (from BBB- to BBB) and Bazhong Development Holding Group (from BBB- to BBB).

CSPI Ratings brings a distinctive strength to rating Chinese local government credits. This strength is underpinned by a proprietary database built over three decades of practice, covering over 2,100 Chinese governments across multiple administrative levels, and further reinforced by its strong track record in international markets.

To view the full list of winners please go here.

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