Page 7 - Fitch Ratings

Strong growth outlook to offset foreign mkt slowdown for India Inc: Fitch

India's resilient growth outlook will offset a slowdown in overseas markets for the country's corporates and easing input cost pressure will help widen their profit margins, Fitch Ratings said on Friday. Earlier this month, Fitch had raised India's economic growth forecast to 6.3 per cent for the current fiscal year 2023-24 from the 6 per cent it had predicted previously. The sustained economic growth will drive cement and petroleum product demand, with high-frequency data trending above pre-pandemic levels so far this year. India's rising infrastructure spending will also boost steel demand, Fitch added. "India's resilient growth outlook will offset a slowdown in overseas markets for the country's corporates and easing input cost pressure will widen profit margins by around 220bp in the financial year ending March 2024," Fitch said in a statement. Slowing demand in the US and the eurozone will moderate sales growth for the IT service sector. However, a corresponding easing of wage

Fitch Ratings ups India's FY24 economic growth estimate by 30 bps to 6.3%

Cautions that slowdown in global trade to pose downward risk

Fitch raises India's GDP forecast to 6.3% for current fiscal year

Fitch Ratings on Thursday raised its forecast for India's economic growth to 6.3 per cent for current fiscal year 2023-24 from 6 per cent it had predicted previously. This is primarily because of a stronger outturn in the first quarter and near-term momentum. The growth forecast compares with 7.2 per cent GDP expansion in FY23. In the previous fiscal year (FY22), the economy had grown 9.1 per cent. "India's economy has been showing broad-based strength - with GDP up by 6.1 per cent year-on-year in 1Q23 (January-March) and autosales, PMI surveys and credit growth remaining robust in recent months - and we have raised our forecast for the fiscal year ending in March 2024 (FY23-24) by 0.3 percentage points to 6.3 per cent," the rating agency said. Fitch had in March lowered its forecast for 2023-24 to 6 per cent from 6.2 per cent citing headwinds from elevated inflation and interest rates along with subdued global demand. For 2024-25 and 2025-26 fiscal years, it estimated a growth of

Fitch affirms stable outlook to $362.5 mn debt of Adani Green Energy RG2

Fitch Ratings has affirmed 'BBB-' rating on Adani Green Energy Ltd Restricted Group 2's USD 362.5 million senior secured notes (bonds), implying a low risk of default. Assigning a stable outlook, the rating agency said that credit assessment is supported by the company's 570MW solar portfolio across two Indian states and long-term fixed-price power purchase agreements (PPAs). The Adani Green Energy Limited Restricted Group 2's (AGEL RG2) consists of 570MW of polycrystalline solar projects, a proven technology with a long operating history, a Fitch rating issued on Friday said. "We regard the operation of these types of solar projects as straightforward and the solar modules are provided by internationally known suppliers" it said. It stated that Fitch Ratings has affirmed the AGEL RG2's USD 362.5 million senior secured, largely amortising notes due 2039 at 'BBB-'. The Outlook is Stable, it held. Explaining about rating rationale, it explained that the AGEL RG2's credit assessment

Fitch upgrades IPO-bound Oyo's long-term issuer rating to 'positive'

Agency sees major growth in Oyo's Ebitda in FY24, led by ongoing demand recovery in travel and tourism, the company's stable gross margins, and reduction in operating costs

Fitch Ratings revises outlook on OYO's long-term issuer ratings to positive

Fitch Ratings on Wednesday said it has revised the outlook on Oravel Stays Ltd's (OYO) long-term foreign- and local-currency issuer default ratings to 'positive' from 'stable', while affirming the ratings at 'B-'. The ratings agency also said it has affirmed the rating on the USD 660-million senior secured term loan facility due 2026, issued by OYO's fully owned subsidiary, Oravel Stays Singapore Pte Limited, at 'B-'. "The outlook revision reflects our view that OYO is on track to generate positive EBITDA and cash flow from operations (CFO) sustainably. This follows positive EBITDA in every quarter of the financial year ended March 2023 (FY23), which is the first year of profits since OYO's incorporation in 2012," Fitch Ratings said in a statement. It further said, "We expect significant growth in its EBITDA in FY24, led by an ongoing demand recovery in the travel and tourism industry, the company's stable gross margins, and reduction in operating costs." The rating reflects OYO's

US AAA credit rating may be downgraded by Fitch on debt-limit impasse

Economists project a US default could trigger a recession, with widespread job losses and a surge in borrowing costs

Fitch says outlook for Tata Steel positive, stable for JSW Steel

Rating for companies based on their EBITDA growth and improved finances

ED searches may tarnish Manappuram's business prospects: Fitch report

Fitch Ratings on Wednesday said the recent search by the enforcement directorate at gold-backed lender Manappuram Finance highlights corporate governance challenges that can arise in emerging markets like India. "Such searches need not lead to further regulatory action, but investigations raise reputational risk that could tarnish a lender's business prospects and constrict funding access due to reduced market confidence - potentially affecting an issuer's credit profile - even if no wrongdoing is identified," Fitch added. The rating agency said Manappuram Finance Ltd has disclosed that the Enforcement Directorate's search at its premises pertained to legacy non-compliant activities at its branches up until 2012. Such searches are relatively rare, and can flag potential governance risks, but the activities the company has identified thus far as being involved are publicly known and Fitch has already factored them into its rating, "including our assessment of the company's corporate

India's economic growth prospects have brightened, says Fitch Ratings

Agency says robust growth outlook offset by weak public finances

Fitch affirms India's sovereign rating at 'BBB-' on robust growth outlook

Fitch Ratings on Tuesday affirmed India's sovereign rating with a stable outlook saying the country has a robust growth outlook and resilient external finances. "Fitch Ratings has affirmed India's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BBB-' with a Stable Outlook," it said in a statement, adding strong growth potential is a key supporting factor for the sovereign rating. "India's rating reflects strengths from a robust growth outlook compared with peers and resilient external finances, which have supported India in navigating the large external shocks over the past year," Fitch Ratings said. However, these are offset by India's weak public finances, illustrated by high deficits and debt relative to peers, as well as lagging structural indicators, including World Bank governance indicators and GDP per capita, it added. The agency has kept kept India's credit rating unchanged at 'BBB-' -- the lowest investment grade rating -- since August 2006. Fitch Ratings fore

Adani Transmission, Adani Ports exposed to contagion risks: Fitch Ratings

Most Adani group stocks recovered some lost ground on Wednesday after a heavy sell-off a day earlier amid reports of the group's ability to service the debt levels.

Fitch says, two Adani entities facing 'heightened contagion risks'

(Reuters) -Ratings agency Fitch said two Adani Group subsidiaries were exposed to "heightened contagion risks", possibly affecting their financial flexibility

Indian corporates likely to see 10%-12% capex growth in FY24: Fitch

The rising capital expenditure trend of Indian corporates is likely to continue and grow at 10%-12% a year during the next fiscal year to March 2024, Fitch Ratings said in a release on Tuesday

Fitch Ratings affirms Adani Ports rating at 'BBB-'; outlook stable

Hindenburg report allegations have limited near term impact

Fitch Ratings affirms 'BBB-' rating on Adani Ports with stable outlook

Fitch Ratings on Thursday affirmed its 'BBB-' rating on Adani Ports and Special Economic Zone Limited with a stable outlook, saying the Hindenburg report has a limited near-term impact on APSEZ's cost of funding. Hindenburg Research in a January 24 report accused Adani group of "brazen stock manipulation and accounting fraud" and using a number of offshore shell companies to inflate stock prices. The group has dismissed the charges as lies, saying it complies with all laws and disclosure requirements. "Fitch Ratings has affirmed India-based port operator Adani Ports and Special Economic Zone Limited's (APSEZ) Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BBB-'. The Outlook is Stable," it said. The Hindenburg report alleging significant governance issues for the Adani Group has triggered a sharp fall in Adani Group entities' equity and bond prices. "The affirmation reflects its view that the Hindenburg report alleging governance issues at the Adani group has a limited

First Republic Bank's rating downgraded to 'B' by Fitch amid cash crunch

The bank is currently operating at a loss and that is not sustainable over the longer term absent a balance sheet restructuring, they said

Fitch Affirms 'BBB-' ratings for Adani Electricity Mumbai's dollar bond

Hindenburg report has limited near-term impact on cost of funding

Markets brace for potential default by Pakistan as $7 bn debt looms

Pak was downgraded deeper into junk by Moody's Investors this week as the country faces its worst economic crisis in decades, with foreign reserves plummeting and inflation soaring to record high

Fitch affirms Adani Transmission restricted group's notes at 'BBB-'

No direct impact of alleged malpractices at group on Credit assessment