Bharti's ratings headroom is likely to improve with an equity infusion, planned asset sales and growing EBITDA from Africa.
The government has to take difficult decisions in the budget, which can include cutting subsidies to curb expenditure on items like fertilisers and also upping revenues.
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.
While the economy seems to be on a firm growth path, the fight against inflation is not over yet. Shaktikanta Das seems to be in no hurry. After playing well through a five-year Test match, he doesn't want to get out hit wicket, observes Tamal Bandyopadhyay.
With general elections on the horizon, the government's privatisation bandwagon has almost but stalled as a government wary of being accused of selling family silver opts for minority stake sales on stock exchanges over outright privatisation. The result -- the divestment target for current fiscal year is again likely to be missed. Big ticket privatisation plans such as that of Bharat Petroleum Corporation Ltd (BPCL), Shipping Corporation of India (SCI) and CONCOR are already on the backburner and analysts feel meaningful privatisation can happen only after April/May general elections.
Bank reforms positive but implementation a risk, says Fitch.
Weak balance sheets due to hefty outgo of funds for new licences will reflect negatively on the 2013 outlook for the sector.
Richest Indian Gautam Adani's group, which has grown on acquisitions, has fairly solid fundamentals but debt-funded future acquisitions can start putting pressure on ratings, S&P Global Ratings said on Thursday. Starting out as a commodities trader in 1988, the Adani group has diversified from mines, ports and power plants into airports, data centres and defence. It recently forayed into the cement sector with a $10.5 billion acquisition of Holcim's India units and is also looking to set up an aluminium factory. Most of this expansion has been funded by debt.
It said the money supply recovered to its pre-demonetisation level in mid-2017 and is now increasing steadily, similar to the previous trend.
Fitch's rival S&P had threatened to downgrade the rating to junk status, calling for immediate course-correction.
Fitch Ratings has said fundamentals of the Indian textiles industry are changing and the sector seems to be on a comeback trail aided by government policies and buoyant exports in 2002-03.
Bank stability is an ever-more pressing concern for the world's corporations and investors says Global Finance, while announcing the half-yearly update of its ranking of the world's 50 safest banks.
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.
This shortfall could continue to hurt loan growth in 2016-17.
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.
Fitch has warned India's "weak public finances" will constrain higher growth in medium term.\n
State-owned oil firms have decided to "wait-and-watch" the international scenario and the rupee-dollar rate before deciding to cut petrol prices.
The comments come a day after Fitch Ratings had warned the setback for the Congress party in recent state elections could imperil the fiscal deficit target by tempting the government to have less restraint on spending.
Expecting oil prices to remain under pressure, Fitch Ratings said deregulation of diesel prices in October will help in lowering the under-recoveries (which is nothing but international petroleum prices minus the subsidised retail rates).
Slowing economic activities in China would result in excess capacities that could hit the overall demand-supply balance.
Fitch Ratings said with GDP growth of 6.5% and WPI-based inflation of 8.8%, India may have entered into a stagflation period in 2011-12.
A potential merger being discussed by Indian telecom major Bharti Airtel and South Africa's MTN could increase the net debt of the two firms by about $6.9 billion, global rating agency Fitch said.
The move was not good for companies which have capital expenditure plans laid out.
A stress test on 30 Indian banks, which account for 78 per cent of the banking system's assets, indicates that capital is protected for a majority of the banks. However, some weak banks would need to raise core capital to guard against the effects of the current downturn in the credit cycle, Fitch said in a statement.
Moody's Investors Service on Tuesday slashed India's growth forecast for the current financial year to 9.3 per cent saying that the second wave of coronavirus infections hampers economic recovery and increases risk of longer-term scarring. Moody's, which has a 'Baa3' rating on India with a negative outlook, said obstacles to economic growth, high debt and weak financial system contrain sovereign credit profile. The US-based rating agency had in February forecast a 13.7 per cent economic growth for the current fiscal (April 2021-March 2022).
The performance of the Mumbai-based public sector bank may continue to lag behind its peers longer than expected due to the deterioration in its credit cycle, the agency said. Even though IDBI's non-performing asset ratios improved significantly after bad loans worth Rs 9,000 crore (Rs 90 billion) were transferred to a trust in FY04, the current economic slowdown could impact the bank's corporate loan portfolio.
Says, Jio unlikely to gain 2% revenue market share in 2017
The agency, which has downgraded Asian auto majors like Toyota, Honda and Hyundai... said the current downturn will continue for the next three-four years and companies in the continent would look at delaying expansion projects and shutting down plants.
ICICI's board has denied any wrongdoing, highlighting that the loan was underwritten in accordance with the bank's credit standards and was extended as part of a consortium involving over 20 banks.
An overview of the 10 biggest banks of the world on the basis of their assets.
While foreign currency rating was retained at Baa2 -- the second-lowest investment grade score -- Moody's also projected a fiscal deficit of 3.7 per cent of gross domestic product in the year through March 2020, a breach of the government's target of 3.3 per cent.
Drop in oil prices and the government's reform agenda has helped India to be out of the Fragile Five group
An evident anti-incumbency trend against the Congress could mean an increasing likelihood of political pressure to limit expenditure cut-backs, it said.
Fitch expected inventory turnover to improve on a sector-wide basis.
A majority of fixed income investors expect the fiscal deficit to stay close to the government's target of 5.5 per cent or lower in the year to March 2011, according to a Fitch Ratings survey of money managers at asset management companies, life insurers, pension funds and banks.
In its report, 'Global Economic Outlook: December 2011', the agency said the Indian economy is likely to regain the 8 per cent economic growth trajectory only in 2013-14.
The agency said announcements by Modi and Finance Minister Arun Jaitley after government formation 'signal a strong intention to pursue reforms'.
International rating agency Fitch said on Wednesday taht it expects to see increased investor interest in the Indian steel industry with steady balance sheet correction - a major issue confronting the sector.
Fierce competition and rising capex will put pressure on most operators in 2017.
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