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 agency said that over the next two years new NPL formation rates would witness a gradual decline.
The government's fiscal deficits have reduced over the last five years.
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 said the government will face challenges in achieving its deficit target for the fiscal year ending March 2021, amid persistent structural and cyclical headwinds to growth.
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.
'It's about running between the wickets. It's about rotating the strike. It's about never putting yourself under pressure.'
"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.
A player-of-the-match award in only his second Test, plaudits from the pundits and even a "man crush" from his England counterpart -- India wicketkeeper Dhruv Jurel could not have dreamt of a better start to his international career.
Any downward revision from the current 'Baa3' rating means junk status for the country.
Tom Moody arrived in Sri Lanka on Saturday evening and will start preparations for the forthcoming Test series against the West Indies.
The Adani group is in advanced talks with top sovereign funds based in West Asia to raise up to $2.6 billion for its airport expansion and green hydrogen projects. The group, which expects to close the ongoing financial year ending March with Rs 80,000 crore of Ebitda (earnings before interest, tax, depreciation, and amortisation), has held a series of road shows in London, Dubai, and Singapore with potential investors, briefing them about their future growth plans. The group's flagship, Adani Enterprises, may dilute part of its stake in the airport-holding firm and/or the green hydrogen business to these funds, which are keen to invest in the Indian infrastructure sector, said a source close to the development.
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.
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.
India's political infighting is denting business confidence.
The land acquisition bill is a catalyst to investment and passing the bill will improve India's business environment.
Former India coach Greg Chappell, former Australia coach John Buchanan and Victoria's Greg Shipperd are the other coaches being targeted by IPL teams.
Moody's on Sunday said any upgrade for the country will depend on consistent improvement in inflation, fiscal deficit and other economic parameters.
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.
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.
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.
Kudos to Shruti Haasan for making grunge look glam.
Tom Moody would coach Western Australia after rejecting an offer to remain in charge of Sri Lanka.
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.
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.
Oil and LNG prices are likely to shoot up if Iran is to block Strait of Hormuz, through which countries like India import crude oil from Saudi Arabia, Iraq and UAE, leading to a spike in inflation, analysts said on the Iran-Israel conflict. The Iran and Israel conflict has escalated over the last few days. Iran first launched drone and rocket attacks on Israel, which retaliated by firing a missile. Crude oil prices have hovered around USD 90 per barrel since the conflict.
Ian Botham wants England coach Duncan Fletcher to step down after the World Cup.
It had upped India's rating to Baa2 from Baa3 and changed its rating outlook to 'stable' from 'positive', saying the reforms would help stabilise rising levels of debt.
It said early polls suggested the BJP should win the largest number of votes and seats, giving it the opportunity to form a government.
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.
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.
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.
Moody's said it reflects India's weaker performance on fiscal.
Moody's said it expects exposure to low oil prices to shave off 0.8 per cent from real GDP growth on average across oil exporting countries in 2016.
The global rating agency has, however, cautioned that India's fiscal position remains 'weak'.
Listing the series of reforms which led to the upgrade, he said while demonetisation took the economy towards greater formalisation and digitisation, use of Aadhaar ensured targeted delivery of government benefits.
The Sri Lankan said his team could still bounce back in the series after losing the first two games.
The 'P-3' ratings suggest acceptable ability to repay short-term obligations.
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