Credit Outlook (Q1 2008), 15 pages

* The quarterly Credit Outlook for Q108, entitled "New year nerves" is published today (please see attached).

* Our overall view remains bearish. With banking woes plaguing the market and further threats looming, a sustainable recovery looks unlikely in Q108.

* But while the outlook for banks is weak, the impact on non-financial corporates looks overdone. Utility spreads should hold up better than those of more cyclical sectors, while telcos' credit fundamentals are better than recent spread movements would imply.