Moody's Rating

Global rating agency Moody's on Monday said it expects Fairfax Financial Holdings' proposed acquisition of a majority stake in IDBI Bank to have limited impact on its financial leverage, citing the Canadian investor's funding plans and strong liquidity position. As of June 30, 2026, Fairfax's financial leverage stood at around 34 per cent, which declined to 27 per cent after excluding non-recourse debt at its non-insurance companies, Moody's said in a statement. The rating agency noted that it does not expect a significant increase in Fairfax's financial leverage, given its funding plans for the transaction. Moody's also highlighted Fairfax's policy of maintaining at least USD 1 billion in cash and liquid investments at the holding company at all times, a practice it expects the company to continue after the transaction. As of June 30, 2026, Fairfax had USD 2.3 billion in cash and liquid investments at the holding company, providing it with a liquidity cushion as it pursues the ...

Moody's Ratings has revised the outlook on IPO-bound OYO parent Prism to 'positive' from 'stable', while reaffirming the travel tech unicorn's B2 corporate family rating. "The positive outlook reflects our expectation that OYO (formerly Oravel Stays) will sustain stronger earnings and free cash flow generation over the next 12-18 months, supporting further deleveraging while maintaining very good liquidity," said Sweta Patodia, a Moody's Ratings Assistant Vice President. "The affirmation of the B2 CFR (corporate family rating) reflects OYO's leading position in the budget accommodation sector across its key operating markets, as well as the geographic diversification of its operations across India, Europe, and the US," said Patodia, who is the lead analyst for OYO, Moody's stated. Explaining the rationale behind ratings, Moody's said, We expect OYO's EBITDA (earnings before interest, taxes, depreciation and amortisation) to grow to around Rs 3,000 crore (USD 315 million) over the ne

Moody's Analytics says India will remain the fastest-growing major economy in 2026 and 2027 despite losing some momentum as global growth slows amid geopolitical risks

Moody's says RBI's acquisition financing norms could intensify competition from banks, putting pressure on private credit deal volumes and yields

India's fragmented water governance structure, highly subsidised pricing and slow reallocation among sectors can result in water shortage and higher risk of sustained fiscal pressure, Moody's Ratings said on Monday. In a report, Moody's said allocation frameworks, which govern how water supply is prioritised, priced and distributed across households, industry and agriculture, are becoming a more important determinant of economic resilience in water-stressed systems because they influence how shortages are absorbed and how quickly supply stress translates into fiscal pressure. It also said that rapidly growing demand from data centers, driven by the expansion of cloud computing and artificial intelligence, is adding a further source of water-intensive industrial pressure that governments and utilities will increasingly need to accommodate. The Moody's report finds that India has a 'fragmented or inflexible' water management framework which is characterised by dispersed governance, we

Moody's Ratings on Tuesday slashed India's GDP growth forecast for year 2026 by 0.8 percentage points to 6 per cent on subdued private consumption, capital formation, and industrial activity amid higher energy costs. In its Global Macro Outlook May update, Moody's said over the next six months, the impact from higher energy prices and fuel and fertilizer-related shortages will vary widely across countries, reflecting differences in exposure and resilience. "The global outlook remains highly uncertain amid an increasingly prolonged confrontation and fragile ceasefire between the US and Iran, We estimate growth losses ranging from around 0.8 ppt for India," Moody's said. For calendar year 2027, Moody's slashed GDP growth estimates by 0.5 percentage points to 6 per cent for India, reflecting lingering headwinds that gradually fade as shipping flows stabilise and energy supplies improve, allowing underlying economic activity to recover. Moody's said India is "particularly vulnerable" t

India has been the most resilient large emerging market economy since 2020, and its sizeable forex reserves have helped check currency volatility and reinforce confidence during global shocks, Moody's Ratings said on Tuesday. In a report on emerging market, Moody's said India is well placed to manage future shocks because monetary policy frameworks are clear and predictable, inflation expectations are well anchored, and exchange rates can adjust when needed. Stating that India is "better placed" among emerging market sovereigns to manage future global shock, Moody's said the country would also enter any future periods of stress with strong and accessible buffers. "India's reliance on domestic funding is balanced by deep local markets and sizeable reserves ... Nevertheless, India's relatively high debt burden and weak fiscal balance limit the amount of space available to respond to successive shocks," Moody's added. It said India had made key policy choices that support stability we

India could face pressure on the rupee, higher inflation and a widening current account deficit if the escalating Middle East conflict spikes energy prices and disrupts supplies, given its heavy dependence on crude and LNG imports from the region, according to Moody's Ratings. "India stands out among the large Asian economies that rely on crude and LNG from the Middle East," the rating agency said. The country imports about 46 per cent of its oil and natural gas requirements from the Middle East. Supplies from the region have been disrupted as the widening West Asia conflict has blocked the Strait of Hormuz, a key conduit for crude oil and LNG exports from the region. "Costly energy imports would weaken the rupee, raise inflation, worsen the current account balance and complicate monetary policy as well as fiscal management if they lead to expanded subsidies to help offset the economic shock," Moody's said in a note on oil supply shock in prolonged West Asia conflict. Strait of Hor

Moody's Ratings on Friday said with a 7 per cent GDP expansion in 2025 and 6.4 per cent in the next year, India will lead growth among emerging markets and across the Asia Pacific region. Moody's also said that India's domestic growth drivers underpin its economic resilience amid global uncertainty. Although the Indian rupee has continued to weaken against the dollar, most rated companies have active currency risk management or strong financial buffers, while investment-grade entities have demonstrated access to international capital markets. "India will lead growth among emerging markets and across the region, with GDP growing 7 per cent in 2025 and 6.4 per cent in 2026," Moody's Ratings said. Its projected average GDP growth in APAC (Asia-Pacific) will remain steady at 3.4 per cent in 2026 compared with 3.3 per cent in 2024 and expected growth of 3.6 per cent in 2025. On a weighted average basis, emerging markets will drive GDP growth in the region, with average growth of 5.6 p

Moody's said that there are several risks ahead, including geopolitical tensions, trade disruptions, and unstable financial markets

The Reserve Bank of India, in its final guidelines, eased project loan rules and cut provisioning burden on banks to 1%, instead of the earlier proposed 5%

The US dollar weakened broadly, hitting a more than one-week low against the safe-haven yen, Swiss franc and euro. Against the Japanese yen, the dollar was down 0.38 per cent at 145.06

Trump has argued that his economic agenda, centered on tax cuts, reduced regulations and sweeping tariffs to bring more manufacturing jobs to the US, would promote strong growth

Moody's Ratings stripped the U.S. government of its top credit rating Friday, citing successive governments' failure to stop a rising tide of debt. Moody's lowered the rating from a gold-standard Aaa to Aa1 but said the United States "retains exceptional credit strengths such as the size, resilience and dynamism of its economy and the role of the U.S. dollar as global reserve currency.' Moody's is the last of the three major rating agencies to lower the federal government's credit. Standard & Poor's downgraded federal debt in 2011 and Fitch Ratings followed in 2023. In a statement, Moody's said: "We expect federal deficits to widen, reaching nearly 9% of (the U.S. economy) by 2035, up from 6.4% in 2024, driven mainly by increased interest payments on debt, rising entitlement spending, and relatively low revenue generation.' Extending President Donald Trump's 2017 tax cuts, a priority of the Republican-controlled Congress, Moody's said, would add $4 trillion over the next decade to

The action comes in the backdrop of the bank's revelations about the inadequate internal controls in accounting for derivative transactions

Moody's Ratings on Wednesday said India's economic growth will exceed 6.5 per cent in the next fiscal, up from 6.3 per cent this year, on higher government capex and consumption boost from tax cuts and interest rate reduction. Projecting a stable outlook for the banking sector, Moody's said although the operating environment of Indian banks will remain favourable in the next fiscal, their asset quality will deteriorate moderately after substantial improvements in recent years, with some stress in unsecured retail loans, microfinance loans and small business loans. Banks' profitability will remain adequate as declines in net interest margins (NIMs) are likely to be marginal amid modest rate cuts, it said. Moody's said that following a temporary slowdown in mid-2024, India's economic growth is expected to reaccelerate and record one of the fastest rates among large economies globally. "Government capital expenditure, tax cuts for middle-class income groups to boost consumption and ..

Nissan has been working on a turnaround programme under which it plans to cut its workforce by 9,000 people and global manufacturing capacity by 20 per cent

Increasing foreign investment limit in the insurance sector to 100 per cent from 74 per cent is likely to attract more global players in the growing Indian insurance market, Moody's Ratings said on Tuesday. Additionally, strong premium growth is expected to boost profitability of the sector. Currently, many foreign insurers are present in the country through joint ventures and could seek to increase their ownership stakes in their Indian affiliates following this change in regulation. "We view foreign investment as credit positive because it increases product innovation. The presence of foreign stakeholders also brings benefits in the areas of capital adequacy, financial flexibility and governance standards," Moody's Ratings said in a statement. Presenting Budget 2025-26, Finance Minister Nirmala Sitharaman proposed to raise the foreign investment limit to 100 per cent from 74 per cent in the insurance sector as part of new-generation financial sector reforms. Moreover, Moody's ..

Finance Minister Nirmala Sitharaman on Sunday flaunted India's unblemished track record of not faltering on any of its fiscal consolidation or debt reduction targets as she seemed to shrug off the passiveness of agencies like Moody's which have not upgraded India's ratings. Sitharaman in her budget for fiscal year beginning April treaded a fine line between fiscal prudence and providing a thrust to growth as she not only gave the middle class the biggest-ever tax relief but also unveiled a glide path for reducing fiscal deficit next year and debt as percentage of GDP by 2031. India, she said, had to borrow more during the pandemic to meet the fiscal needs of the economy amid global challenges, supply chain disruptions and geopolitical conflicts in two theatres. "Despite all these we have shown a commitment and following the commitment to the last word as regards fiscal deficit and the glide path that we should follow," she told PTI in an interview. "We have, not one year have we ...

ICRA, in its report on Budget expectations, estimated the fiscal deficit target for FY2026 to be set at 4.5 per cent of GDP