It said equity injection by foreign retailers is likely to improve the capital structure of their Indian peers, to help part-fund future capex requirements.
The government's Rs 20.97 lakh crore COVID-19 package lacks in addressing the immediate concerns of the economy as the actual fiscal impact of the additional stimulus is only about 1 per cent of the GDP as opposed to the claim of 10 per cent, Fitch Solutions said on Tuesday. Prime Minister Narendra Modi on May 12 announced a stimulus package of Rs 20 lakh crore, or nearly 10 per cent of GDP, to deal with the economic fallout of COVID-19. The contents of the package were broad-based and announced in five tranches.
Public sector banks require Rs 2.40-lakh crore.
When the WPP chief Martin Sorrell advocates his ad agencies to compete for client businesses with his "kiss-and-punch" philosophy, design companies owned by the WPP group have collaboration on their minds.
The rating agency said it has affirmed and withdrawn long and short term Issuer Default Rating of 'BB' and 'B' and 'BB-' rating on Corus' Euro 800 million 7.5 per cent senior notes.
Global rating agency Fitch has upgraded its support ratings for several Indian banks, including ICICI Bank, HDFC, Punjab National Bank, Canara Bank, Bank of India and IDBI among others.
India's sovereign rating could be cut if the government loosens fiscal policy in the run-up to elections, says Fitch.
Rating agency Fitch Ratings has said mobile number portability (MNP) is unlikely to hit operators, considering the dominant pre-paid nature of the market and high churn rate, and opined that India will not behave too differently from rest of Asia on this matter.
Fitch says possibility of downgrading India's sovereign rating is more than 50 per cent.
Rating agency Fitch on Thursday affirmed India's foreign and local currency ratings at 'BB+'
Rates India 'BBB-' with a negative outlook.
Global rating agency Fitch on Friday pegged India's growth at 5.5 per cent in the current fiscal and 6 per cent in 2015-16 and affirmed the country's rating outlook at stable level.
Despite December's deal by U.S. politicians to avoid the so-called "fiscal cliff" of spending cuts and tax hikes, Fitch's head of sovereign ratings, David Riley, said pressure on the country's rating was increasing.
The Indian economy will suffer lasting damage from the coronavirus crisis and after an initial strong rebound in FY22 (fiscal year ending March 2022) growth will slow to around 6.5 per cent a year over FY23-FY26, Fitch Ratings said on Thursday. "A combination of supply-side scarring and demand-side constraints - such as the weak state of the financial sector - will keep the level of GDP well below its pre-pandemic path," it said in commentary on the Indian economy. Fitch said India's coronavirus-induced recession has been among the most severe in the world, amid a stringent lockdown and limited direct fiscal support.
Global credit rating agency Fitch upgraded outlook for the Indian telecom sector from 'negative' to 'stable'.
Report says stressed asset level to peak at 15% in 2014-15.
India's economic growth has slowed to a three-year low of 5.3 per cent in the April-June quarter of the current fiscal.
The agency has also retained 'stable' outlook for the country's ratings.
Following the footsteps of ICRA and CRISIL on rating corporate governance, credit rating agency Fitch will also take up such an exercise soon.
The stimulus measures include extension of the 90-day moratorium on recognition of impaired loans to 180 days, in addition to several relaxations in bank lending limits, including allowing banks to fund interest on working capital loans.
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.
Rating agency Fitch on upgraded outlook of 10 financial institutionals, including SBI, ICICI Bank and EXIM Bank of India to 'stable' from 'negative' earlier following revision in the country's outlook.
"A significant decline in the growth number for this quarter is highly likely, but for the fiscal year as a whole the decline may still be relatively moderate," Fitch Asia-Pacific Sovereigns Group Director Thomas Rookmaaker said.
Officials in the finance ministry are not happy with credit rating agency Fitch's revision of India's local currency outlook to negative from stable. Officials say Fitch's conclusion that the central government's fiscal deficit will rise to 4.5 per cent of gross domestic product in 2008-09, as against 2.8 per cent in the previous fiscal, is wrong.
The rating agency official did raise concern about the banks' non-performing assets.
In household savings, there has been a persistent shift towards physical assets.
"Fitch Ratings has placed Punjab National Bank's (PNB) Viability Rating of 'bb' on Rating Watch Negative (RWN), following the large fraud reported by PNB," the US-based agency said in a statement.
The agency said the rating revision to stable with apositive outlook reflects continuing strong financial and operating performance.
Rating agency Fitch Ratings today said there is more pain in store for India's infrastructure projects, which are already reeling under delays and regulatory hurdles, due to sector specific stresses and macroeconomic challenges.
Fitch had last rated India in 2010, giving India's foreign and local currency rating at 'BBB-/stable'.
Rating agency Fitch on Tuesday upgraded India's long-term foreign and local currency issuer default ratings
Finance Minister Arun Jaitley said government would continue reforms by taking executive actions.
Global agency Fitch on Wednesday cut credit rating outlook to negative from stable of 11 financial entities, including State Bank of India, ICICI Bank, Punjab National Bank and Axis Bank.
"The 2012 outlook for the Indian pharmaceutical industry is stable. The agency expects credit profiles to remain stable given that long-term earnings and profitability prospects remain intact with moderate capex," Fitch said in its report '2012 Outlook: Indian Pharmaceutical'.
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The rated oil and gas companies, Fitch said, have a significant proportion of foreign currency-denominated debt.
In all, RBI has cut interest rates by 110 bps this year. But this has not yet led to a boost in economic activity. While the growth rate has slowed to a five-year low, consumer confidence is waning and foreign direct investment has plateaued.
The disruptions caused by COVID-19 have more severely impacted small and mid-sized corporates, including NBFCs and MFIs, in terms of access to liquidity.
According to a report by rating agency Fitch, different sets of regulations imposed by different regulators may result in an uneven playing field.
The new government will have to spur investment to bosot economy, says Fitch.
However, the budget lacked very specific measures detailing how this will be achieved," the statement said.
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