Tag: Fitch Ratings

India Discom Reforms – Promising start, but efficiency gains key

Newsroom24x7 Staff Singapore: Fitch Ratings says in a Special Report published today that the voluntary rehabilitation scheme of India’s central government – Ujwal Discom Assurance Yojana (UDAY) – for financial and operational turnaround of distressed state distribution utilities (discoms) has already seen a large number of important states signing up for the programme. However, the

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Masala Bonds to Facilitate Indian Funding Diversification

Newsroom24x7 Desk Singapore/Mumbai: The recent issuance of the first offshore masala bonds by Indian companies could pave the way for a broader opening and development of the market, says Fitch Ratings. This will be positive for the better-quality issuers that are able to take advantage of offshore capital markets to diversify their funding sources without

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South China Sea: APAC Geopolitical Risks Rise But Not a Ratings Driver Yet

Newsroom24x7 Desk Singapore/Hong Kong: Maritime disputes in the South China Sea underscore the growing importance of geopolitics in shaping the international policy agenda of countries in the Asia Pacific. Fitch Ratings believes shifts in the regional and global balance of power mean geopolitical risks will remain prevalent in the long term. These risks have the potential

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Brexit result broadly credit negative for most UK sectors: Fitch

Newsroom24x7 Staff London: The “Leave” result in the UK referendum on membership of the European Union is credit negative for most sectors in the UK, due to weaker medium-term growth and investment prospects and uncertainty about future trade arrangements, Fitch Ratings says. Brexit will be moderately credit negative for the UK sovereign, Fitch points out

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Recession in the United States?

Newsroom24x7 Desk New York City:  For an incisive perspective on 1.What is the impact of lower oil prices on investment spending for the global economy? 2.Growth expectations for China? 3.The Fitch perspective on monetary policy in advanced economies outside the U.S.? Listen: Recession in the United States? (9 minute podcast) James McCormack, Global Head of

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India at the top of the global growth ladder

Newsroom247 Desk New Delhi: Fitch has maintained its GDP growth forecast for India for the fiscal year ending March 2016 (FY16) at 7.5%. Fitch has maintained in its Global Economic Outlook, published 7 March 2016 that growth in India is expected to gradually accelerate to 7.7% in FY17 and 7.9% in FY18. This implies minor

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Fitch Downgrades Steel Authority of India to ‘BB’, Outlook Negative

Newsroom24x7 Staff Singapore: Fitch Ratings has downgraded Steel Authority of India Limited’s (SAIL) Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘BB’ from ‘BBB-‘. The Outlook is Negative. The downgrade follows the deterioration in SAIL’s financial profile after a prolonged weakening in international steel prices. SAIL’s debt-funded capex programme has magnified the impact of weak prices.

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India Bank Consolidation Positive in the Long Term

Newsroom24x7 Staff Mumbai/Singapore: A consolidated Indian banking structure would be a positive development in the long term for the Indian banking system, says Fitch Ratings. We believe that consolidation coupled with higher capital requirements and governance reforms would position the banking system better in support of a more open and higher-growth economy. The topic of

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India’s Budget not enough to boost steelmakers’ profitability

Newsroom24x7 Desk New Delhi: Fitch Ratings says that increase in proposed infrastructure spending in India’s latest government budget is unlikely to provide a boost to domestic steel demand growth, unless project execution rates pick up significantly. Domestic steel producers also face overcapacity, which is likely to weigh on their profitability and credit metrics in the

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Declines in net oil bills help India, other countries reduce energy subsidies

Newsroom24x7 Desk Hong Kong: Fitch Ratings says that net oil bills have declined significantly for Asia-Pacific sovereigns amid dramatic declines in crude prices since 2013. Asia is the largest crude importer globally, with gross import volumes roughly equivalent to the rest of the world combined. Fitch-rated sovereigns in Asia are all net oil importers, with

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Capacity expansion and competition could hit the profitability of Indian and South-East Asian airlines in FY16

Newsroom24x7 Staff New Delhi: Improved earnings outlook is likely for Indian and South-East Asian Airlines in 2016, Fitch Ratings today said while projecting that stiff competition and a huge order book for new aircraft could make it difficult to improve profitability for the sector. As the passenger load factors (PLF) in India and south-east Asia have risen steadily,

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Indian banks more stable but challenges stay

Newsroom24x7 Desk Mumbai: Capital-raising will be a key theme for Indian banks, as asset-quality pressures gradually stabilise and banks look to revive credit growth in support of a recovering GDP outlook. However, there will be challenges for state-owned banks in particular, given weak core capitalisation and expectations of slow earnings recovery due to high credit

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Masala Bonds Offer India Firms Funding Diversification

Newsroom24x7 Desk Mumbai/Singapore: The opening of a ‘Masala’ bond market, where Indian firms issue bonds offshore in rupee, will provide an opportunity for some larger issuers to diversify funding sources without taking on currency risks, says Fitch Ratings. The ability to diversify funding, according to Fitch, would be credit positive, but in the early stages of

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Indian Banks Report Card: Challenges for India’s state bank sector despite improving macro

Newsroom24x7 Desk Mumbai/Singapore: The performance of India’s state bank sector remained challenged in FY15 (to end-March 2015), with continued pressure on asset quality and weak capital, according to Fitch Ratings’ Indian Banks Report Card FY15 published on 6 July. Capital needs are likely to increase substantially each year up until FY19. There are few indications

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