Moody's Investors Service on Thursday said India is likely continue to face challenges in raising longer-term growth potential and creating enough jobs for its young population in the absence of higher trade openness. In its report on South Asia sovereigns, Moody's said compared with other South Asian economies, India appears to be in a better position to deepen its integration in global value chains, attract FDI and increase exports. The country has better macroeconomic fundamentals, more stable politics and a more developed export sector.
The state-owned bank's loss largely offsets the Rs 1,800-crore (Rs 18-billion) capital injection the government will make in FY14.
Moody's expect RBI to hold policy 'repo' rate steady to have a neutral stance in this growth
International credit ratings agency Moody's Investors Service changed its outlook for India's banking system to negative from stable due to concerns that an increasingly challenging operating environment will adversely affect asset quality, capitalisation, and profitability.
'We are pretty comfortable and to be honest with you, there is nothing we can do about what happened with David Warner. We have moved on from there'
A day after Fitch lowered India's local currency outlook to negative, international rating agency Moody's said it was also worried about the reversal of India's fiscal situation due to high oil prices and the lack of policy adjustment by the government. Moody's, however, said it was unlikely to change its investment grade rating to India's sovereign foreign currency rating or the domestic currency rating, which is below investment grade.
Moody's assigns a 'Baa3' rating on India, with a stable outlook.
Moody's Investors Service on Thursday downgraded subordinated debt ratings of 11 Indian banks, including SBI, ICICI Bank and HDFC Bank.
The World Bank has projected that India's economy will grow at over 6 per cent in 2014-15 and 7.1 per cent by 2016-17 as global demand recovers and domestic investment increases.
Finance Minister Arun Jaitley presented his maiden budget last week in which he vowed to contain fiscal deficit at 4.1 per cent this year and lower it to 3 per cent by 2016-17.
The analysis by Moody's assumes significance with many central banks around the world talking about exit from monetary stimulus soon to tame the rising inflation.
While current coach Anil Kumble is an automatic entry into the process, the others in the fray are Australian Tom Moody and Englishman Richard Pybus.
The agency said that over the next two years new NPL formation rates would witness a gradual decline.
Tom Moody arrived in Sri Lanka on Saturday evening and will start preparations for the forthcoming Test series against the West Indies.
The government's fiscal deficits have reduced over the last five years.
'KKR's form over the past two weeks is not going to be relevant tomorrow. They have got a lot of experience in that team. There are lot of players who know how to win play-offs. So, we make sure that we focus on us and play with the same mindset we have been playing so far'
Sukanya Verma raises a toast to the top female performers of 2024.
Former India coach Greg Chappell, former Australia coach John Buchanan and Victoria's Greg Shipperd are the other coaches being targeted by IPL teams.
Any downward revision from the current 'Baa3' rating means junk status for the country.
Moody's Investors Services on Tuesday gave a speculative grade rating to India's domestic-currency debt on account of the government's heavy borrowings, while doubting sustainability of nine per cent GDP growth.
Good, bad, evil, we saw a gamut of emotions on display in their most stirring form as actors reiterated their worth.
Moody's has cautioned the government against targeting double-digit gross domestic production expansion saying any growth beyond 7 per cent without reforms will fuel inflation that will result in 'more painful' future adjustments.
Tom Moody would coach Western Australia after rejecting an offer to remain in charge of Sri Lanka.
A fuming Tom Moody says he was left 'embarrassed' after Sunrisers Hyderabad's poor batting performance against Mumbai Indians which saw them lose by 20 runs in the Indian Premier League match at the Wankhede stadium in Mumbai, on Saturday.
Higher food prices can accelerate broader inflation by pushing up wages, while negatively impacting the government finances and reducing monetary policy flexibility, Moody's said in a report.
Former South African quick Dale Steyn opined that MI's frontline pacers Bumrah and Coetzee need support from other bowlers, given the rigours of the IPL. He hinted that an off-colour Pandya was not helping MI's bowling department.
India's political infighting is denting business confidence.
Moody's on Sunday said any upgrade for the country will depend on consistent improvement in inflation, fiscal deficit and other economic parameters.
Ian Botham wants England coach Duncan Fletcher to step down after the World Cup.
The land acquisition bill is a catalyst to investment and passing the bill will improve India's business environment.
But says govt finances the weakest aspect of the country's macroeconomic profile.
Moody's currently assigns 'Baa3' rating on India, with a stable outlook. 'Baa3' means medium grade with moderate credit risk.
"The downgrade of the bank's BCA and ratings reflects the negative impact of the discovery of a number of fraudulent transactions on the bank's standalone profile, particularly its capital position," the rating agency said in a report.
Global ratings agency Moody's on said it has a "negative" outlook on the country's banking system due to concerns over asset quality and the high interest rates.
Pointing out that these recent measures are incremental rather than radical, Moody's said, these steps will sustain higher gross domestic product growth and address some of the constraints on the country's sovereign credit profile.
In the wake of the sharp downturn in the valuations of mortgage-backed securities last year, financial firms justified their investment in these non-transparent instruments on the triple ratings accorded to them.
It said early polls suggested the BJP should win the largest number of votes and seats, giving it the opportunity to form a government.
The share of foreign loans in total Adani group debt portfolio dropped to 61 per cent by September 2023 from 63 per cent as of March 2023, as the group repaid part of its foreign loans and refinanced part of older loans. The share of Indian lenders, on the other hand, rose to 39 per cent in the total debt pie in September 2023 from 37 per cent in March after a report by US-based short seller Hindenburg Research in January last year, which led to volatility in the share prices of group companies. The group's total debt remained static at Rs 2.26 trillion in the same period.
Global rating agency Moody's said the decision to change the outlook on 'Barclays's C-/ baa2 standalone rating to negative from stable' reflects concerns over resignations of seniors and the consequent uncertainty surrounding the firm's direction, which are negative for bondholders.
Reliance Industries Ltd is expected to invest Rs 30,000 crore (Rs 300 billion), of the total Rs 70,000 crore (Rs 700 billion) announced, in its telecom arm Reliance Jio Infocomm over the next two years, credit rating firm Moody's said on Monday. The investment in the telecom business is a credit negative for RIL because RJio will not generate any EBITDA (an indicator of cash flows) for at least next 12 months, it said. Moody's added however that RJio will be a formidable competitor in the sector making it a credit negative for top telecom operators already in the field. "Based on RIL's March 2014 annual report, we estimate that it has already invested about Rs 400 billion (Rs 40,000 crore) in Reliance Jio, and we expect RIL to invest the next Rs 300 billion in Reliance Jio over the next two years," Moody's Investors Service said in a statement. RIL recently announced that it will launch commercial 4G telecom service of RJio in 2015 entailing investment of Rs 70,000 crore. RIL has said that RJio will initially cover about 5,000 towns and cities accounting for over 90 per cent of urban India, as well as over 215,000 villages in India and the target is to expand this to over 600,000 villages. Moody's said RJio will be a "formidable competitor in India's telecom sector" as it will enter the business with financial muscle. RJio's entry into highly competitive telecom sector is also credit negative for incumbent mobile operators and market leaders Bharti Airtel and Vodafone India because "it will undoubtedly result in intensified competition that will lead to declines in average revenue per user and margins". But, it also said that strong spectrum holding of incumbents; existing large subscriber-bases and well- established brand equity; offering 2G and 3G services (apart from 4G services being launched) as well as marketing and distribution architecture mitigate much of the near-term competitive threat from Reliance Jio for them. "Furthermore, given issues of language and literacy, large parts of rural India remain a substantially voice-based market where near-term demand for 4G services may be muted," Moody's said.
