Indian firms have become more credit-worthy in the current fiscal on better profitability and funding access, rating agency Crisil said on Thursday.
'If the period between 1991 and 2014 was about laying the foundations and building the runway, the period from 2014 to 2024 has been about the aircraft taking off.'
CRISIL reaffirms P1+ rating to Nahar CP.
The Crisil study covered 600 companies excluding financial services and oil companies, representing 71 per cent of the overall market capitalisation of India Inc.
India's leading steel companies hope the Modi 3.0 Budget will continue the massive capital expenditure currently underway, focusing on infrastructure development, manufacturing, and fair trade. The infrastructure segment is the largest steel user, and the government's focus has fuelled steel consumption even as international markets have underperformed. According to provisional statistics, steel consumption grew 13.6 per cent in FY24, reaching 136 million tonnes (mt), according to a CRISIL report.
The net leasing of Grade-A commercial office space in India will stagnate this financial year at 32-34 million square feet, with global uncertainties brewing caution among key tenant categories, according to the latest Crisil Ratings report. Major seven cities in India - Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai Metropolitan Region (MMR), National Capital Region (NCR) and Pune - had Grade-A office space with an operational stock of around 705 million square feet as of March 2023. India's commercial office space is dominated by technology companies, with information technology (IT) and IT-enabled services (ITeS) companies occupying 42-45 per cent of the operational stock.
Amid the political blame game over Bengal's potato ban, which led to shortages in Jharkhand and Odisha, Uttar Pradesh farmers are the unlikely winners.
The rating agency has released the study on its ratings experience in the default and transition ratings of both short-term and structured securities in the country in the last 16 years. The data used for the study covers a period of weakened credit quality (1995-1999) as well as one of improving credit quality (2000-2007).
International rating agency Standard & Poor's has become the majority shareholder of Indian credit rating agency Crisil Ltd with 58.5 per cent stake, after it acquired 49.07 per cent shares during its recent open offer.
Crisil said a complete phase out of CST is necessary.
'The central bank has highlighted that the slowdown in growth has been limited to a few sectors and overall growth is expected to pick up in the second half of the year.'
The Credit Rating Information Services of India Ltd (Crisil) has reaffirmed its ratings of three different fund raising programmes of Tata Iron and Steel Company Ltd (Tisco).
In line with other rating agencies and economic organisations, Crisil on Friday forecasted 7.1 per cent economic growth in the wake of an excellent monsoon, but warned that the fiscal deficit would overshoot the target besides lower export growth.
Rating agency Crisil has revised downwards the Indian GDP growth forecast for FY09 to 8.1 per cent, from the earlier 8.5 per cent, in view of the high inflationary conditions, interest rate and global growth outlook.However, despite the growth deceleration, Crisil expects inflation to stabilise at an average 5.5 per cent in 2008-09 in a normal monsoon scenario, the agency said.
The government on Thursday ruled out giving another extension to various states for unbundling their electricity boards as part of measures to encourage non-government entities in the power sector.
The agency has predicted that monsoon will also be a major factor.
The current capital flight is a short-term phenomenon, the agency said.
The domestic currency will appreciate to touch the 50 level by next March provided certain measures are taken by the government urgently, the rating agency's research wing said in a note.
"The examination will cover several aspects, including standalone profiles of the Indian subsidiaries, our assessment of the strength and quality of parent support, and translation of global ratings to the Crisil scale," Crisil Ratings Senior Director Raman Uberoi said.
Credit rating agency Crisil has announced that it has reached a preliminary understanding with Equifax Inc of the US, and Tata Capital Ltd to set up a credit information company, which provides credit histories and checks on retail borrowers.
Indian IT-enabled services companies can attain high profitability in the long term and growth of such services will be highly sustainable, according to report by CRIS INFAC, subsidiary of CRISIL.
CRISIL upgrades ratings for IPCL debt plan.
Crisil said the next fiscal could be a year of new leadership and old challenges.
The liquidity will move into deficit after advance tax payments and GST outflows. It will rebound in October because of government spending.
The agency had in May projected an economic growth between 7.7 and 8 per cent for this fiscal and Monday's revision comes within a week of rival Fitch Ratings, and Citigroup revising the same to 7.5 per cent from 7.7.
The profitability of public sector banks would decline by over 40 per cent by 2005-06 due to re-pricing of the government securities portfolio, credit rating agency Crisil said.
The average cost of a vegetarian thali became dearer by 10 per cent in June due to the jump in onion, potato, and tomato prices, a report said on Friday. However, a decline in the broiler price contributed to a decrease in the cost of a non-vegetarian meal, as per Crisil Market Intelligence and Analysis' monthly "Roti Rice Rate" report. The cost of veg thali, which comprises roti, vegetables (onions, tomatoes and potatoes), rice, dal, curd and salad, increased 10 per cent to Rs 29.4 per plate in June from Rs 26.7 in the year-ago period, and was higher when compared to Rs 27.8 in May 2024, it said.
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The agency also warned the government of overshooting the fiscal deficit target at 4.8 per cent due to poor revenue growth and pegged it at 5.2 per cent this fiscal.
Dr Nagesh Kumar, one of the three new MPC members, wanted the MPC to reduce the repo rate by 25 basis points to 6.25%.
The bidding for four spectrum bands is scheduled to start from March 4.
If El Nino condition affects the monsoons, as is being forecast by foreign agencies, it can slow down the economy to 5.2 per cent next fiscal from a projected 6 per cent.
Credit rating agency Crisil on Wednesday said depreciation in the rupee will shave off up to Rs 4,000 crore (Rs 40 billion) from the profits of Nifty companies in the December quarter.
Foreign investment in multi-brand retail could help ease the problem of high food prices, an issue on which the government is fighting a major political battle, research firm Crisil said.
Domestic bourse BSE has approved the acquisition of a 50 per cent stake in index provider Asia Index (AIPL) from equal joint venture partner S&P Dow Jones (SPDJ) Indices for Rs 30 crore. AIPL, the index provider, is responsible for compiling and maintaining the widely followed Sensex, Bankex, and other indices. Passive funds with assets of nearly Rs 2 trillion are benchmarked with indices provided by AIPL.
'With tuition fees for international students rising, education loans have become critical for bridging the gap between savings, scholarship, and full cost.'
The rating agency expects that key fiscal indicators of state governments -- revenue deficit and gross fiscal deficit - may deteriorate from 2009 though the impact will begin to be felt in the current fiscal. It further said that the adverse effect of lower revenue growth will be aggravated due to higher development and non-development expenditures.
