The damage from the COVID-19 crisis continues to weigh on issuer financials in Asia-Pacific. Our ratings on a net 16% of issuers have negative outlooks or are on CreditWatch with negative implications. While this ratio is a slight improvement over recent months, it still implies a significant likelihood of downgrades or defaults in 2021. The economic recovery in Asia-Pacific indicates an upside to revenue in 2021. However, the substantial hit to borrowers' financials in 2020 means that a full recovery to 2019 credit metrics is unlikely for the majority of issuers until well into 2022.