Page 3 - India Ratings

Growth in housing prices may moderate in FY25 to 5% annually: India Ratings

Housing demand and prices are likely to moderate this fiscal on a high base effect with sales expected to rise 8-10 per cent and rates by around 5 per cent annually, India Ratings and Research (Ind-Ra) said on Tuesday. The rating agency has maintained a neutral outlook for the residential real estate sector for the 2024-25 fiscal. "Absorption and prices are likely to be supported by affordability and stability of interest rates. However, given the high base of FY24, the growth rates are likely to taper down," Ind-Ra said in a statement. The residential real estate market registered a strong performance during the first nine months of the 2023-24 fiscal where the sales growth exceeded 25 per cent year-on-year (Y-o-Y) for the top eight real estate clusters, despite price increases and sticky interest rates. "With most regions witnessing a surge in prices, Ind-Ra expects the pre-sales growth to moderate to 8 to 10 per cent yoy in FY25. Inventory levels have also risen over FY24 in the

India Inc's credit quality remains healthy in H2FY24: Rating agencies

While commodity prices have softened, revenue of upgraded companies in the CRISIL rating pool grew by about 13 per cent in fiscal 2024 largely led by a pick-up in volume

Corporate downgrade-to-upgrade ratio inches higher in FY24: Report

Domestic rating agency India Ratings and Research on Monday said there was a marginal uptick in the corporate downgrade-to-upgrades ratio in FY24, when compared to the year-ago period. There were 312 upgrades as compared to 114 downgrades in FY24, which resulted in the ratio between the two coming at 0.37 per cent, which is marginally higher when compared to the 0.26 per cent in FY23, the city-based agency said. "The pace of upgrades moderated while at the same time downgrades increased, both of them marginally by about one percentage point," its head of credit policy group Arvind Rao said. However, the ratio at 0.37 per cent is still low, the agency said, attributing the performance of its rated entities to the continuing Indian growth story. Its associate director Suparna Banerji said the upgrades were witnessed in investment, consumption and service sectors, while the downgrades in the textiles and construction sectors. Meanwhile, its peer Care Ratings said it upgraded the rati

India Ratings lowers MFI sector outlook to 'neutral' from 'improving'

Flagging caution on overleveraging, the rating agency revised the outlook on the microfinance sector to 'neutral' from 'improving'

India's GDP growth likely to moderate to 6.5% in FY25: India Ratings

On the consumption side, India Ratings expects private final consumption expenditure to grow by 6.1 per cent in FY25, up from 4.4 per cent in FY24

Govt plans to raise capital spending as much as 20% in FY25: Report

The government is trying to raise capital spending on building infrastructure to as much as Rs 12 trillion ($144.59 billion) from the current year's plan of Rs 10 trillion

Pick up in consumption contingent on controlling inflation: Ind-Ra

The Indian economy is facing the challenge of lower consumption growth as high inflation is impacting people in the lower income bracket, India Ratings and Research Chief Economist Devendra Kumar Pant said on Sunday. He said although the country's economy is now resilient enough to deal with the dual shocks of below-normal monsoon and high global oil prices, the challenge is to bring down inflation so that people can have more disposable income in their hands. "One percentage point reduction in inflation will lead to 64 basis points increase in GDP or 1.12 percentage points increase in PFCE (Private final consumption expenditure) growth... If inflation can be brought down by 1 percentage point, it would be a win win," Pant said in an interview to PTI. PFCE denotes money spent by individuals on goods and services for personal consumption. As per the estimates of Ind-Ra, which is a subsidiary of global rating agency Fitch Ratings, PFCE would grow 5.2 per cent year on year in current

Sebi slaps fine of Rs 3 lakh on India Ratings and Research for lapses

Markets regulator Sebi has slapped a penalty of Rs 3 lakh on India Ratings and Research for certain lapses. Sebi and the Reserve Bank of India conducted a joint inspection of the entity from August 22 to 29, 2022, and the period covered under the inspection was from August 1, 2021, to June 30, 2022. In its order, Sebi said the inspection findings brought out two instances where the entity was not complying with the requirements of the regulator's circular. The Securities and Exchange Board of India (Sebi) imposed the fine of Rs 3 lakh after taking into various mitigating factors, including that issuers and debenture trustees did not inform the rating agency about delay/ default on the payment of the NCDs (Non Convertible Debentures), investors were institutional investors and were adequately informed about the risks involved in the NCDs. According to Sebi, there was a delay by the rating agency in recognition of a default done by Altico Capital India, and another instance was the .

GMR group to raise Rs 3,200 cr loan for developing Vizag int'l airport

GMR Group holds the airport business under the airport holding company, GMR Airports Ltd (GAL)

SBI mulls to raise up to Rs 10,000 cr tier-II bond issue next week

The bonds are rated AAA by consulting and rating firms CRISIL and India Ratings

India Ratings downgrades Vedanta's long term rating from 'AA' to 'AA-'

Ind-Ra consistently takes a consolidated perspective of VDL and its subsidiaries, collectively referred to as the VDL group, owing to their intertwined strategic, operational, and financial ties

Ind-Ra downgrades Sterling and Wilson Renewable Energy in 'default' grade

Ind-Ra highlighted concerns that the company's operating cash flows would not be adequate to address its upcoming debt obligations in October 2023

ADB lowers FY24 GDP forecast to 6.3%, India Ratings raises it to 6.2%

ADB has, however, retained FY25 growth forecast at 6.7 per cent, citing rising private investment and industrial output are expected to drive growth

India Ratings revises GDP growth estimate for FY24 to 6.2% from 5.9%

India Ratings and Research on Wednesday upwardly revised its FY24 real GDP growth estimate to 6.2 per cent from the 5.9 per cent expected earlier. The domestic ratings agency attributed its revision to a variety of factors, including the government's capital expenditure, deleveraged balance sheets of India Inc and banks, subdued global commodity prices and the prospect of private capital expenditure picking up. India Ratings, however, also flagged some constraints on Gross Domestic Product (GDP) growth in the current fiscal year before the general elections, including a slip in global growth, which has hit Indian exports, tighter financial conditions upping cost of capital domestically, a deficit monsoon, and tepid manufacturing growth. "All these risks will continue to weigh and restrict India's GDP growth to 6.2 per cent in FY24, and the quarterly GDP growth, which came in at 7.8 per cent in the June quarter, is slated to slow down sequentially in the remaining three quarters of .

India's current account deficit seen falling to $10 bn in Q1: India Ratings

With falling trade deficit, India's current account deficit is likely to narrow to around USD 10 billion or 1 per cent of GDP in the April-June quarter of the ongoing fiscal, according to India Ratings. The country's current account deficit (CAD) stood at USD 18 billion or 2.1 per cent in the corresponding period of the previous fiscal. However, the agency expects CAD to rise in the second quarter of the current fiscal as it sees merchandise exports declining below USD 100 billion after a gap of eight quarters. Imports are expected to be around USD 163 billion during the period, up from a seven-quarter low of USD 160.3 billion witnessed in Q1 FY24, due to increase in crude prices since July. This will have the overall trade deficit printing in at a three-quarter high of USD 64 billion, the rating agency said. Another reason is the moderation in services demand since June due to the slowdown in the global economy. Global services PMI stood at a five-month low of 52.7 in July. Thus,

Shrem InvIT scraps plans for NCDs; opts for loan to acquire 10 road SPVs

Evaluating 10 more operating roads; to expand capital by Rs 330 cr

Sharp rise in unsecured loans may push credit costs: India Ratings

The unsecured loan book saw higher credit losses during the pandemic, however on a steady state basis, the losses can range between 4-8%

OTS slows down recoveries from retail portfolios for ARCs to 35%: Report

Recoveries by asset reconstruction companies (ARC) from retail loan portfolios have slowed down to 35 per cent since the launch of the one-time settlement (OTS) scheme in October last year, a domestic rating agency said on Thursday. The ARCs have started following measured steps to ensure realizations, which has slowed down the pace of recovery, and the recovery timelines can have got stretched by three to four quarters, India Ratings and Research said in a report. Recoveries across retail loan, including housing and ones to micro, small and medium enterprises, have seen a drag, coming at 35 per cent of the principal outstanding during June-December 2022 review cycle, the agency said. The rating agency said a change in prescribed norms, which now require an independent advisory committee to examine all settlement of dues with borrowers including retail, SME and MSME loans may be resulting in this and added that as per OTS, all the methods of recoveries shall have to be exhausted ...

ICRA downgrades ratings of Shapoorji Pallonji to BBB+, places it on watch

ICRA has downgraded the ratings of Shapoorji Pallonji and Company to BBB+ from A- and placed it on rating watch with developing implications.

NBFCs to face funding woes, may hit growth, says India Ratings

Banks and capital markets together account for most of the funding sources for NBFCs (April-December 2022 9MFY23: 73 per cent)