Credit Rating Agencies

The government has strengthened its engagement with global rating agencies through a structured interactive process, during which the overall macroeconomic scenario is highlighted before them, Parliament was informed on Tuesday. Sovereign credit rating agencies such as S&P, Fitch, and Moody's have assigned India the lowest investment-grade rating. Moody's Ratings has assigned a 'Baa3' rating on India, with a 'stable' outlook, while S&P Global Ratings has a 'BBB-' with a 'positive' outlook. Fitch rates India at 'BBB-' with a 'stable' outlook, while Morningstar DBRS in May upgraded India's rating to 'BBB', with a stable trend. In a written reply to the Rajya Sabha, Minister of State for Finance Pankaj Chaudhary said the government has made sustained efforts to strengthen India's overall economic outlook, thereby positively impacting its credit profile. These include maintaining sound macroeconomic fundamentals, such as steady growth, price stability, fiscal consolidation, a ...

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Any agency that expands ratings to such instruments will need to set up a new unit within six months, the Securities and Exchange Board of India (SEBI) said in a consultation paper

Aadhar Housing Finance has said CARE has upgraded the rating of the company's long-term bank facility and non-convertible debentures (NCDs) by a notch. The rating agency has improved rating to CARE AA+ from CARE AA, Aadhar Housing Finance said in a statement on Tuesday. The outlook has been kept stable, it said. For the fourth quarter ended March 2025, Aadhar Housing Finance reported a 21 per cent rise in net profit to Rs 245 crore as against Rs 202 crore in the same quarter a year ago. Total income during the quarter under review rose to Rs 834 crore from Rs 692 crore in the year-ago period.

In February, the government in the Union Budget hiked the income tax rebate to Rs 12 lakh from Rs 7 lakh

Under the new norms, the CRA will act as 'Past Risk and Return Verification Agency' with a recognized stock exchange serving as 'Past Risk and Return Verification Agency' data centre

India Ratings and Research (Ind-Ra) on Tuesday said corporate credit profile continued its robust performance in the first half of the current fiscal with 202 issuers getting rating upgrades. Large corporates and A-rated corporates witnessed a higher number of upgrades in the first half of the fiscal, taking the downgrade-to-upgrade (D/U) ratio to a low at 0.31 for the first half, said Arvind Rao, Head of Credit Policy Group, Ind-Ra. "The corporate credit profile continued its robust performance in 1HFY25, the fourth year in a row. During this period, Ind-Ra upgraded the ratings of 202 issuers, representing 20 per cent of the reviewed portfolio, while the ratings of 62 issuers were downgraded," Ind-Ra said in a statement. Rao further said that the D/U ratio is expected to moderate marginally in the current fiscal, compared to 0.37 in the 2023-24 fiscal. "We expect issuer rating upgrades to outpace downgrades in the second half of the current fiscal," Rao said. Ind-Ra said that dur

The credit rating agency expects India's GDP to grow by 6.8 per cent for the full fiscal year 2024-25, lower than the 8.2 per cent achieved in 2023-24

Governor of the Reserve Bank of India Shaktikanta Das said that India is capable of meeting its external payment obligations and a credit ratings upgrade should happen soon

Markets regulator Sebi has issued new guidelines to streamline operations and enhance the ease of doing business for credit rating agencies. The circular introduces specific timelines for dealing with appeals made by companies regarding rating actions carried out during periodic surveillance of ratings. These modifications will be applicable, with effect from August 01, 2024, the Securities and Exchange Board of India (Sebi) said in a circular on Thursday. "In order to promote ease of doing business and bring about uniformity in dealing with appeals, based on consultation with stakeholders, including CRAs (Credit Rating Agencies), it has been decided to provide specific timelines for dealing with appeals made by the issuer in respect of rating actions carried out pursuant to periodic surveillance of ratings," it added. The changes mandate that CRAs communicate ratings to companies within one working day of the rating committee meeting, with an outer limit set to ensure ...

Domestic air passenger traffic grew 5.1 per cent year-on-year to an estimated 138.9 million in May and was significantly higher by around 14 per cent than pre-Covid levels, credit ratings agency Icra said on Thursday. Icra also said the outlook on the Indian aviation industry is stable amid the continued recovery in domestic and international air passenger traffic with a relatively stable cost environment and expectations of the trend continuing in FY2025. The airlines' capacity deployment in the previous month increased 6 per cent year-on-year and about 2 per cent higher than April 2024, it added. According to the agency, the domestic air passenger traffic for FY24 was around 154 million, with a year-on-year growth of around 13 per cent. It thus surpassed the pre-COVID levels of around 142 million in FY2020, the ratings agency said, adding that the international passenger traffic for Indian carriers stood at around 29.68 million last fiscal, registering a year-on-year growth of ..

Care Ratings on Friday reported a 35 per cent jump in its standalone net profit at Rs 34.8 crore in the fourth quarter ended March 31, 2024. The domestic rating agency had a profit after tax of Rs 25.9 crore in the January-March quarter of the 2022-23 fiscal. Total income rose 13 per cent to Rs 88.5 crore during the March quarter, Care Ratings said in a late night regulatory filing on Thursday. For the 2023-24 fiscal, the standalone net profit rose 15 per cent Y-o-Y to Rs 119.4 crore. Total income also grew 15 per cent to Rs 330 crore in the 2023-24 fiscal. The board of Care Ratings has declared a final dividend of Rs 11/share, which will take the total declared for the year to Rs 18/share. Shares of Care Ratings were trading at Rs 1,104.20 on Friday in early trade on BSE, up 0.29 per cent over the previous close.

'Non-complying ARC shall be subject to supervisory action,' says regulator

Passenger vehicle (PV) volumes are expected to log 5-7 per cent growth, touching a new peak for the third straight time in the next fiscal driven by the SUV segment, credit rating agency Crisil said on Monday. This anticipated growth is expected to come on the back of an estimated high base of 6-8 per this financial year even as demand for cars and exports remain muted, it said. A significant change in consumer preference has cranked up demand for SUVs leading to its market share doubling to around 60 per cent of total domestic volume this fiscal from around 28 per cent before the pandemic in fiscal 2019, the ratings agency said. This preference is expected to grow further, backed by a healthy pipeline of new model launches across price points, including electric variants, and normalised availability of semiconductors after a prolonged period of short supply, it said. "While the overall PV volume is seen rising 5-7 per cent next fiscal, we expect demand for SUVs to accelerate at .

Fitch Ratings said that though the interim budget presented was broadly in line with the expectations, it won't change the sovereign credit profile from 'BBB-' with a stable outlook

The pace of recovery in the industry earnings will be gradual owing to the high fixed cost nature of the business

The report also notes that as many as 628 projects with an anticipated completion cost of Rs 7.7 trillion are scheduled to be completed in H2 FY24

The ten emerging economies include Brazil, China, India, Indonesia, Korea, Mexico, Poland, Russia, South Africa, and Turkey

Job creation in industry continues as firms continue getting new business, says S&P Global

Rating upgrades outnumber downgrades in Apr-Sep 23; global slowdown begins to bite export oriented units