Credit rating upgrades for Asian tech firms could generate a range of benefits for the sector, including lower borrowing costs, better valuations for debt instruments and more inflows. "There is real innovation happening in this space," Siew said. "You have this emerging group that were rated BBB that can realistically go toward A ratings."
Some Asian technology companies with credit ratings on the lower end of investment grade may be upgraded within the next two years as they seize on artificial intelligence growth, a portfolio manager at Muzinich & Co. said.
The comments by Mel Siew, who manages a US$90 million ($117.5 million) Asia credit fund at the US investment firm's Singapore office, stand somewhat in contrast to muddied sentiment in the region triggered by President Donald Trump's chaotic tariff rollout. But they also underscore investors' steadfast confidence in the sector, bolstered by Chinese startup DeepSeek's breakthrough AI technology and Beijing's supportive stance for private companies.
