Page 18 - Fitch Ratings

Fitch revises outlook on Vedanta-led Cairn India from stable to negative

Oil and gas business is the second-largest contributor to Vedanta's EBITDA, after the Indian zinc operations

Indian banks' NPA write-offs to continue amid low recoveries: Fitch Ratings

The state-owned banks account for a dominant share (around 90 per cent) of impaired loan stock and have cumulatively written-off nearly 30 billion dollars in bad loans over the past three years

Banks need Rs 50,000 cr additional capital to support loan growth: Fitch

Fitch said the rating outlook for most Indian banks mirrors the stable outlook on India's sovereign rating

Liquidity pressures faced by NBFCs, HFCs, to continue: Fitch Ratings

Liquidity pressures faced by the non-banking financial sector following the IL&FS failure are likely to continue though funding costs have come off the peak, Fitch Ratings said on Friday. "We view wholesale and housing finance companies (HFCs) as more vulnerable -- given their higher leverage, weaker asset-and-liability maturity (ALM) profiles and higher concentration risks. Large retail finance companies with well-managed ALM profiles should continue to access bank and capital markets funding. Further, funding diversification in the offshore markets by larger issuers would benefit their funding profiles," it said in its outlook for emerging market finance and leasing companies. Indian finance and leasing companies are likely to grow at a slower pace in 2020 than in prior years, amid weaker economic growth and liquidity constraints, it said. Fitch said its 2020 sector outlook is underpinned by challenging operating environments, lower growth prospects, and rising funding pressure.

Moody's cuts India's credit outlook to negative; govt not convinced

Outlook downgrade comes 2 yrs after ratings upgrade. Govt says fundamentals remain strong

Fitch raises India's FY20 fiscal deficit to 3.6% of GDP on sluggish growth

Fitch said it was revising the fiscal deficit forecast as revenue collection is likely to fall far short of the projections in the FY20 Union Budget due to weak GST collections

Fitch places Bharti on rating watch negative after top court's ARG ruling

RWN resolution may take over six months as it requires clarity on exact amount and timing of payment of dues and whether govt will provide financial relief to telecom sector

Fitch Rating slashes India's GDP growth forecast to 5.5% for FY20

Weakness has been fairly broad-based, with both domestic spending and external demand losing momentum, Fitch said

NBFC crisis: Indian banks could face a $50-billion capital shortfall: Fitch

The weakest, including those with Viability Ratings in the 'b' range, would face heightened solvency risks without capital injections from the government, the rating agency said

India has limited room to ease fiscal policy due to high debt: Fitch

It said GDP (gross domestic product) growth is likely to rebound to 7.1 per cent next year

Fitch too downgrades Macrotech Developers on low liquidity concerns

Fitch said the risks around Macrotech's ability to meet domestic debt maturities of Rs 2,000 crore, Rs 5,000 crore, and Rs 4,600 crore in FY20, FY21, and FY22, respectively, are rising

Now Fitch, too, downgrades Lodha to 'B-', warns of more rating cuts

Any rating below BBB- is junk or below investment grade and the city's largest developer has already been having a junk rating by foreign rating agencies

India Ratings defends process after IL&FS row, says Fitch executive dumped

Finding itself at the centre of the IL&FS controversy, India Ratings on Saturday said its investigation into the role of a senior director at parent firm Fitch's Singapore office found him in violation of the company's code of conduct and he is no longer an employee. The rating agency also defended its rating process, saying its ratings for IL&FS group entities followed a robust and transparent analysis of relevant information including the company's audited financial statements and sought to shift the blame to falsification and sprucing up of the financials by the former top management of the group. It rejected the observations made in a special audit by Grant Thornton of the ratings given by five credit rating agencies, including India Ratings, to some IL&FS entities, in which it has been alleged that the agencies continued to give top ratings despite being aware about weak financials of the group. The audit has also flagged attempts by the erstwhile top management of ...

Relaxing FDI limit in insurance intermediaries to boost distribution: Fitch

The Budget proposal of relaxing foreign investment limit in insurance intermediaries will strengthen distribution capabilities and increase international involvement, particularly from developed markets, Fitch Ratings said Monday. The Budget 2019-20 tabled in Parliament on July 5, permitted foreign companies to own up to 100 per cent in insurance intermediaries, including insurance agents, brokers, loss assessors and surveyors, from the 49 per cent, to attract more foreign direct investment into the industry. "India's proposed removal of the foreign-ownership cap on insurance intermediaries is likely to increase competition, strengthen distribution capabilities to enhance insurance penetration and boost M&A in the medium to long term," Fitch Ratings said in a statement. The proposed change is only applicable to insurance intermediaries while the cap on foreign ownership in insurance companies will remain at 49 per cent. Still, the government has indicated that it may take further .

Budget 2019 lacks meaningful fiscal consolidation plan: Fitch Ratings

It further said some measures could weigh on growth over time, such as higher import duties on many products to 'provide a level playing field to domestic industry'

Fitch downgrades ratings for Axis Bank and ICICI Bank to BB+ from BBB-

The rating action in case of two Indian private banks comes after Fitch lowered its midpoint for India's operating environment to 'bb+' from 'bbb-'

Fitch retains India's credit rating at 'BBB-' with a 'stable outlook'

The rating agency said India's economy is expected to grow at 6.8% in the financial year ending March 2020

Fitch cuts India's growth forecast to 7.2% in FY19 on higher financing cost

It forecast Indian rupee to weaken to 75 to a dollar by end of 2019

General govt debt is high, it hasn't changed: Fitch Ratings' McCormack

Fitch Ratings retained India's sovereign rating at BBB-, the lowest investment grade rating last week

Govt move on fuel prices to hit OMCs' profitability, credit metrics: Fitch

The ratings of the three firms, IOC, BPCL and HPCL will be unaffected as they are driven by state support, said Fitch