International rating agency Fitch said on Tuesday the change in India's sovereign rating is constrained by the high level of fiscal deficit and its review will be done after the budget for 2005-06 has been presented.
Global rating agency Fitch has revised upwards India's growth projection to 6 from 5 per cent for the current fiscal and said the recent election results should provide additional confidence and spur growth.
There has been no change in Tata Steel's strategy on operations in the United Kingdom (UK), company chairman N Chandrasekaran has told shareholders. The statement comes amid growing concern about the restructuring plan in the face of change in government in the UK. Tata Steel's plan for the UK entailed a 1.25 billion investment plan agreed upon by the Conservative party-led government in September last year.
This shortfall could continue to hurt loan growth in 2016-17.
Bank reforms positive but implementation a risk, says Fitch.
Although the Fitch revised the outlook on Long-term Local Currency Issuer Default Rating from stable to negative, it has retained the investment grade rating at BBB-, which indicates low credit risk. The downgrade by Fitch is one of the main reasons for all-round selling in the stock markets. Another global rating agency Standard and Poor's last week had said it might downgrade India's sovereign ratings, if the country's rising inflation and widening fiscal deficit.
Taking note of the government's efforts to contain fiscal deficit, Fitch Ratings revised India's Outlook to Stable from Negative and affirmed 'BBB-' rating.
Since Indian economy grew by 8.9 per cent in the first half, Fitch projections mean that it will expand by a slower growth rate in the second half.
Credit rating agency Fitch India has affirmed AAA(ind) rating, indicating lowest expectation of credit risk, of Reliance Industries Ltd, following the announcement of audited results for the year ended March 31, 2002.
Upstream firms have a tremendous financial pressure due to selling crude at subsidised rates to oil marketing firms.
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The agency's lead analyst Art Woo added that fiscal management is a challenging task.
India's populist pre-election Budget, unveiled on Friday, sparked concern at credit rating agency Fitch which said the plans confirmed the government was unwilling to grasp the need to cut spending.
Fitch Ratings says in a report published on Thursday that the spillover effects of a weaker rupee have not significantly hurt India's creditworthiness, and hence would not trigger any rating action as this point.
The officials, sources said, will impress upon rating agencies the resolve of the government to follow the path of financial prudence and bring down the fiscal deficit to 3 per cent by 2016-17.
Fitch on Monday said the likely upturn in the country's investment climate and reduction in interest rates will improve the property market by the end of March 2016.
With their weak metrics and high bad loans, India's state-run banks have not been investor favourites
Since January 1, the rupee value has fallen by 5.5 per cent against the US dollar and touched life-time low of 58.98 on Tuesday.
With funds more readily available, Fitch expects a portion of stalled housing projects to resume construction, and this will feed into its forecasts for India's buildings sector growth in the short term.
Global agency Fitch on Monday lowered the rating outlook of public sector companies including NTPC, SAIL and IOC to negative but said the downgrade of India's credit outlook to negative would not impact the rating of Reliance Industries.
Money funds represent less than 5 per cent of broad money supply in India, Canada, Korea and Taiwan.
From the Sensex pack, HCL Technologies, Infosys, Wipro, Bharti Airtel, Larsen & Toubro, Mahindra & Mahindra, Tata Consultancy Services and Asian Paints were the major gainers. Axis Bank, IndusInd Bank, Bajaj Finance, JSW Steel, State Bank of India and Tata Steel were among the major laggards.
The US-based agency, however, termed the 7 per cent GDP growth for the October-December quarter as "surprising", a tad lower than 7.4 per cent in the previous quarter.
The rating agency has affirmed the company's National Long Term Rating at 'AAA' with a stable outlook.
It said the money supply recovered to its pre-demonetisation level in mid-2017 and is now increasing steadily, similar to the previous trend.
According to the agency, while the impact of the Supreme Court's decision is limited, the cancellation of the 2G licences highlights the Indian banks' exposure to infrastructure.
Says, Jio unlikely to gain 2% revenue market share in 2017
Fitch frowns at government pay hikes.
Global agency Fitch Ratings on Tuesday retained India's long-term foreign and local currency ratings at the speculative grade, saying that while the country's external account had improved, local public finances had deteriorated.
The country, however, suffers from excessive regulation and tax laws, which is concern for foreign investors, Fitch group managing director for corporate rating Richard Hunter told PTI in an interview.
Anil Agarwal-owned Vedanta Resources (VRL), which has hired Standard Chartered Bank to raise funds for its Konkola copper mine assets, says it is engaging with several potential partners for both short-term funds and long-term equity financing for the Zambian project. A Vedanta official said its commitment to optimising capital allocation and driving expansion is a key cornerstone of its strategy for the mines. It will enhance value creation and operationalise the Konkola Copper Mines (KCM).
A likely easing in inflationary pressures in the forthcoming months will reopen the window for the RBI to once again prioritise growth and ease its interest rates.
Finance Minister P Chidambaram on Friday downplayed the lowering of India's credit outlook by global rating agency Fitch, saying it is not a cause of worry as economic fundamentals are strong.
Weak balance sheets due to hefty outgo of funds for new licences will reflect negatively on the 2013 outlook for the sector.
Drop in oil prices and the government's reform agenda has helped India to be out of the Fragile Five group
Govt needs to stick with its stated agenda and consolidate public finances.
India's budget could have been more ambitions on the fiscal front.
The Indian banks' total net level of non-performing loans could be double their reported level, even though asset quality has improved over the years, according to a report by Fitch Ratings India Ltd.
WPI inflation fell to a 5-year low of 3.74 per cent while the retail inflation was at 7.8 per cent in August.
Ratings firm Fitch on Wednesday assigned a stable outlook to the Indian auto components sector in 2012 and said it is expected to perform well on the back of demand from original equipment manufacturers for localised content.
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