Moody's Report

Moody's affirmed India's sovereign rating at Baa3 with a stable outlook, citing growth and external resilience but warning that high debt and weak affordability persist

Developed and emerging economies in East and Southeast Asia are key targets for AI investments, with India, Singapore and Malaysia rapidly establishing themselves as prime destinations for data centre projects or chip manufacturing, Moody's Analytics said on Wednesday. In its report titled AI Is Beating the Odds, Moody's Analytics said at a time when cross-border investment is slowing and global trade is fracturing, spending on artificial intelligence (AI) is powering against the current. "Even though trade and geopolitical tensions are knocking economies, soaring AI demand is outpacing supply. To close the gap, global investors are pouring capital into data centres and semiconductor projects," it said. The report further said that the US share of outbound AI investment outpaces its inbound share, a sign that US tech giants are expanding their global footprint. "Developed and emerging economies in East and Southeast Asia are key destinations. In particular, India, Singapore and ...

Moody's expects Indian banks to maintain asset quality despite global economic tensions, with NPAs remaining in the 2-3 per cent range over the next 12 months

China drove global oil demand growth over the last decade, but now India is poised to take the lead in demand growth over the next decade, according to a latest report by Moody's Ratings. China and India are No. 2 and No.3 oil consumers in the world. But there are notable differences in demand growth in the two countries. "Demand growth and import reliance will be higher in India," Moody's said. "Demand will grow faster in India than in China over the next decade, as China's economic growth slows and penetration of new energy vehicles accelerates." Consumption of crude oil - the raw material for making fuels like petrol and diesel - in China will peak in the next 3-5 years, while in India Moody's expect annual growth of 3-5 per cent in the same period. Stating that both countries rely heavily on oil and gas imports, the rating agency said it expects China's reliance on oil imports to fall, reflecting slower demand growth and increased domestic production. "India's reliance on impo

Moody's downgrade, analysts said, was more to get the rating in sync with Fitch and S&P, who have already downgraded US' ratings.

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

Moody's Analytics on Thursday said India's growth will slow to 6.4 per cent in 2025, from 6.6 per cent in 2024, as new US tariffs and softening global demand weigh on exports. In its report titled 'Asia-Pacific Outlook: Chaos Ahead', Moody's Analytics said growth across the Asia-Pacific economy will slow in 2025 as trade tensions, policy shifts, and uneven recoveries knock the region's fortunes. "Growth across the region will slow as new tariffs and softening global demand weigh on exports," it said. It projected Chinese GDP growth slowing to 4.2 per cent in 2025 and 3.9 per cent in 2026 from 5 per cent in 2024. Growth in India will creep into the low-6 per cent range in the coming years from 6.6 per cent in 2024. As per its APAC forecast, India's GDP is expected to grow 6.4 per cent both in 2025 and 2026 fiscal years.

Moody's forecast an annual adjusted profit of $14 per share to $14.50 per share, above analysts' estimates of $13.58, according to data compiled by LSEG

While ransomware attacks continue to grow in frequency and ransom demands, the share of victims willing to comply with hackers is steadily declining, making larger firms more attractive targets

The central bank released a set of preliminary guidelines last month, including suggesting that banks will be required to allocate an additional 5 per cent reduction in the stability of retail deposit

It can 'exacerbate volatility' in the country's economic growth and spark social unrest, says agency

A level below 1,700 cubic meters indicates water stress, with 1,000 cubic meters being the threshold for water scarcity, according to the govt

India's benchmark 10-year bond yield saw its biggest surge in eight months following the poll outcome

Moody's Analytics reported that India's output is currently 4% below what it would have been without the impact of the Covid-19 pandemic

Moody's cautioned that a continued increase in the debt burden could weaken India's fiscal strength and put downward pressure on the rating

Operating environment for Indian banks to improve in 2024, says Moody's

The decision could lead to smoother foreign currency transactions, lower inter-bank fees, and increased trade and investment, according to Moody's Analytics Industry Practice Lead Mohamed Daoud

Central banks' restrictive monetary measures may impact GDP growth and amplify challenges for global banks in 2024, warns Moody's

Moody's Investors Service on Thursday retained India's economic growth forecast for 2023 at 6.7 per cent and said strong domestic demand will likely sustain the growth in the near term. With exports remaining weak against an unfavourable global economic backdrop, Moody's in its Global Macroeconomic Outlook 2024-25 said sustained domestic demand growth is propelling India's economy. "We expect India's real GDP to grow about 6.7 per cent in 2023, 6.1 per cent in 2024 and 6.3 per cent in 2025," Moody's said. India's real GDP rose 7.8 per cent year-over-year in June quarter, up from 6.1 per cent in March quarter and bolstered by a 6 per cent increase in household consumption and solid capital expenditure and service sector activity. India's growth momentum remains strong and we expect the economy to grow 6.7 per cent in 2023, as it did in 2022, it said. Moody's said high-frequency indicators show that the economy's strong June quarter momentum carried into July-September as well. "Ro