Tag: Fitch Ratings

Indian Automakers’ Challenges to Persist After Weak 1Q: Fitch Ratings

Mumbai/Singapore: Subdued demand conditions that led to weak performance by Indian automakers in the first quarter of the financial year ending 31 March 2020 (FY20) will likely persist, adding to the challenges from the implementation of stricter emission norms under BS6 from April 2020, says Fitch Ratings. Most auto OEMs reported lower volumes and profitability

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US-China Trade War Escalation Could Knock 0.4pp Off World GDP by 2020: Fitch Ratings

Newsroom24x7 Network The imposition by the US of 25% tariffs on the remaining USD300 billion of imports from China would reduce world economic output by 0.4pp in 2020, Fitch Ratings says. Global GDP growth would slow to 2.7% this year and 2.4% next year, compared with our latest “Global Economic Outlook” baseline forecasts of 2.8%

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Fitch downgrades long-term default and viability rating of ICICI and Axis banks

Newsroom24x7 Network Mumbai: Fitch Ratings has downgraded ICICI Bank Limited’s Long-Term Issuer Default Rating (IDR) to ‘BB+’ from ‘BBB-‘ and its Viability Rating to ‘bb+’ from ‘bbb-‘. The Outlook on the IDR is Stable. Fitch has also affirmed ICICI’s Support Rating at ‘3’ and Support Rating Floor at ‘BB+’. A full list of rating actions

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Indian OMCs to continue to be affected by soft margins, Capex

Newsroom24x7 Network Singapore/Mumbai: The financial profiles of India’s three oil-marketing companies (OMCs) – Bharat Petroleum Corporation Limited (BPCL; BBB-/Stable), Indian Oil Corporation Ltd (IOC; BBB-/Stable) and Hindustan Petroleum Corporation Limited (HPCL; BBB-/Stable) – may weaken modestly as gross refining margins are likely to remain soft in the financial year ending March 2020 (FY20) amid increasing

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Indian banks reflect weak core capitalisation and poor profitability

Newsroom24x7 Network Mumbai: Fitch maintains a negative sector outlook on Indian banks, to reflect the ongoing struggle of state banks with weak core capitalisation amid rising macro headwinds and poor profitability. Indian banks need significantly more capital than that the state has earmarked so far, given the size and complexity of the asset-quality problem and

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Indian Rupee becomes the worst-performing major currency in Asia

Newsroom24x7 Network Hong Kong/Singapore/Mumbai: Indian Rupee has depreciated by around 9% against the US dollar since the start of 2018, making it the worst-performing major currency in Asia, according to Fitch. Fitch today released it’s analysis vis-a-vis the performance of Indian Rupee by stating that the widening of the trade deficit in July 2018 to

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Rising fuel prices pose India Auto-loan delinquency risks: Fitch Ratings

Newsroom24x7 Network Hong Kong/Singapore: Rising fuel prices could strain India’s commercial vehicle operators and lead to a rise in auto-loan delinquencies, says Fitch Ratings. That said, the upbeat economic outlook suggests operators may find it easier to pass increased costs on to customers than during previous fuel-price spikes. Delhi diesel prices averaged INR67.4 per litre

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Fitch places PNB’s Viability Rating on Rating Watch Negative

Newsroom24x7 Network Singapore: 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. Fitch will resolve the Rating Watch once more clarity emerges on the extent of control failures and the impact on PNB’s financial position. At this stage, Fitch does

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Indian banks face USD65 billion capital shortage by FYE19

Newsroom24x7 Network Mumbai/Singapore: Indian banks are likely to require around USD65 billion of additional capital to meet new Basel III capital standards that will be fully implemented by the financial year ending March 2019 (FY19), according to Fitch Ratings’ latest estimates. According to Fitch, weak capital positions have a major negative influence on Indian banks’

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Coal-fired plant load factor  in India falls by 2.1 percent point in the first half of 2017

Newsroom24x7 Network About 24% of households in India are yet to be electrified. Sporadic outages continue to plague the country. New Delhi: Though the overall coal-fired plant load factor (PLF) in India fell by 2.1 percentage point (pp) year over year (yoy) to 60% in the first half of 2017, with the gas based PLF

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Fitch downgrades Reliance Communications Limited’s Default Ratings

Newsroom24x7 Network Singapore/Hong Kong: Fitch Ratings has downgraded India-based Reliance Communications Limited’s (Rcom) Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) to ‘CCC’ from ‘B+’. Fitch has also downgraded the rating on Rcom’s USD300 million 6.5% senior secured notes due 2020 to ‘CCC/RR4’ from ‘B+/RR4’. The Rating Watch Negative on the IDRs and notes, which

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India’s sovereign ratings balance: Fitch points to weak fiscal position and difficult business environment

Newsroom24x7 Network India’s Long-Term Foreign- and Local-Currency Issuer Default Ratings is affirmed at ‘BBB-‘. The Outlooks are Stable. The Country Ceiling is also affirmed at ‘BBB-‘ and the Short-Term Foreign- and Local-Currency IDRs are affirmed at ‘F3’. –Fitch Ratings Hong Kong: On India’s sovereign ratings balance, Fitch Ratings has affirmed a strong medium-term growth outlook

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Indian small auto borrowers face more short-term pressure

Newsroom24x7 Desk Demonetisation has disrupted economic activity – particularly in the informal sector – and is likely to have hit borrowers’ incomes.      — Fitch Ratings Hong Kong/Singapore: Demonetisation appears to have had a negative impact on Indian auto-loan repayments, based on collection reports from Fitch-rated securitisation transactions. Small auto-loan borrowers have been affected

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SBI’s core capitalisation to improve in the financial year ending-March 2017

Newsroom24x7 Staff Singapore/Mumbai: Fitch Ratings expects SBI’s core capitalisation to improve in the financial year ending-March 2017 (FY17), from a core equity Tier 1 ratio of 10.3% at end-September 2016. SBI is likely to receive around USD835 million in new capital from the government shortly (of the total USD1.1 billion earmarked for FY17; around 5%

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