Page 3 - Moodys

Strong economic base to help new govt make India a developed nation by 2047

India's world record beating economic growth rate together with robust tax revenues, a fast expanding digital and financial infrastructure and a strong manufacturing sector will give the new government a base for unleashing next generation reforms that may make the country a developed nation by 2047. The new government will however have to tackle with problems like unemployment and rural distress, which seemed to have played a major role in voting pattern in states like Uttar Pradesh, while also keeping inflation under control. Given that no party, including BJP, have a clear majority of its own, tough reforms like big ticket privatisation and labour law reforms may take a backseat. As per the available trends, BJP is likely to win about 240 seats in a 543- member Lok Sabha. It would have to rely on its allies like TDP and JDU to form the next government. The new government will have to build upon the 8.2 per cent GDP growth recorded in 2023-24 and carry on with the reforms to make

Moody's projects 6.8% GDP expansion in 2024 on strong economic growth

Moody's Ratings on Friday projected India to grow 6.8 per cent in the current year, followed by 6.5 per cent in 2025, on the back of strong, economic expansion, along with post-election policy continuity. India's real GDP grew 7.7 per cent in 2023, up from 6.5 per cent in 2022, driven by robust capital spending by the government and strong manufacturing activity. High-frequency indicators, including robust goods and services tax collections, rising auto sales, consumer optimism and expanding manufacturing and services PMIs, have signalled sustained economic momentum in March and June quarter this year. "We believe the Indian economy should comfortably register 6-7 per cent annual real GDP growth and we forecast around 6.8 per cent growth," Moody's said in its update to Global Macro Outlook 2024-25. It said strong, broad-based growth will likely be sustained with post-election policy continuity. Moody's said this year's interim Budget targets capital expenditure allocation of Rs 1

India's GDP to expand at 6.6% in FY25; will fuel NBFCs' growth: Moody's

Moody's Ratings on Tuesday said the Indian economy is projected to expand 6.6 per cent in the current fiscal year and said strong credit demand fuelled by robust economic growth will support the NBFC sector's profitability. "We expect India's economy to expand 6.6 per cent in the year ended March 2025 (FY25) and 6.2 per cent the following year, and this will lead to robust loan growth at NBFCs, mitigating the impact of rising funding costs on their profitability," Moody's Ratings said. The Indian economy is estimated to have expanded 8 per cent in the 2023-24 fiscal year. In a commentary on the non-banking finance companies, Moody's said robust economic conditions will help them preserve their asset quality even as rise in interest rates increase the debt burdens of their customers. "Funding costs for non-bank finance companies (NBFCs) in India are rising, but strong credit demand fuelled by country's robust economic growth will support the sector's profitability. "Also, robust ..

Moody's tops quarterly profit estimates on back of strong product demand

Moody's Investors Service revenue grew 35%, fueled by improved market conditions and opportunistic activity which drove strong issuance across multiple asset classes, said CFO Noemie Heuland

Moody's maintains stable outlook for India, cautions on political tensions

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

Moody's revises India's GPD growth forecast to around 8% for FY24

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

Moody's ups GDP forecast, India to remain fastest growing G20 nation

Moody's Ratings on Thursday raised India's GDP growth forecast for FY24 to around 8 per cent from 6.6 per cent on the back of strong domestic consumption and capital expenditure. The estimate comes a day after RBI Governor Shaktikanta Das said the economic growth in the current financial year could be close to 8 per cent in view of the third quarter GDP data released by the government. The latest estimate of Moody's is about 140 basis points higher than the earlier projection of 6.6 per cent made in November 2023. The National Statistical Office (NSO) has projected 8.4 per cent growth in December quarter of the current financial year. It has also revised GDP estimates for the first and second quarters to 8.2 per cent and 8.1 per cent from 7.8 per cent and 7.6 per cent, respectively. "We expect India to be the fastest-growing economy among major G20 countries, with its real GDP growth to accelerate to around 8 per cent in the fiscal year ending March 2024 (fiscal 2023-24) from 7 per

'Private credit returns will be pressured by banks as competition rises'

As banks compete harder to win big deals, recent private credit loans have priced at some of the tightest spreads on record, according to data compiled by Bloomberg

Microsoft, Walmart help Israeli VC Team8 raise $500 mn to support startups

Moody's Corp. and Temasek Holdings Pte also backed the three new funds and follow-on funding that brings Team8's assets under management to more than $1 billion

Adani shares buck trend, rally up to 5% in a slippery market

Renewed confidence among overseas investment firms has helped lift sentiment at the Adani Group counters on BSE and NSE.

Moody's revises outlook on 4 Adani firms to 'stable' from 'negative'

The global ratings agency changed the outlook to 'stable' on Adani Green, Adani Electricity Mumbai, Adani Transmission, and Adani Energy Solutions

Israel hit with first ever downgrade as Moody's cites impact of war

Prime Minister Benjamin Netanyahu said the decision does not reflect the state of the country's economy

Moody's downgrades agri solutions provider UPL, maintains negative outlook

Credit rating agency Moody's Investors Service on Tuesday downgraded agriculture solutions provider UPL to Ba1 and maintained the negative outlook on deterioration in the agrochemical industry. Moody's has downgraded the senior unsecured rating for UPL Corporation (UPL Corp) to Ba1 from Baa3 and has also downgraded the rating on the long-term junior subordinated rating on UPL Corp's USD 400 million undated perpetual Eurobonds to Ba3 from Ba2, the credit rating agency said in a statement. Further, Moody's has assigned a Ba1 corporate family rating (CFR) to UPL Corp and withdrawn the company's Baa3 issuer rating. "The downgrade to Ba1 is driven by a protracted deterioration in the agrochemical industry fundamentals that will keep UPL's credit metrics weaker than our expectation for an investment-grade rating," Moody's Senior Vice President Kaustubh Chaubal said. The Moody's rating action is following UPL's weak operating results for the third quarter of the fiscal ending March 2024 .

Moody's downgrades ratings of 17 Chinese local govt financing vehicles

It left the ratings of nine other Chinese LGFVs unchanged but cut their outlooks to negative too due to the same pressures.

Insurance sector may see further listing, M&A in coming months: Moody's

Having raised Rs 1,930 crore in FY23, the insurance sector may witness further capital transactions, including stock market listings and M&A, to improve the sector's capital adequacy and financial flexibility in the months ahead, a report said. Indian insurers' favourable growth prospects have encouraged the sector to raise capital, outweighing the adverse impact of their weak underwriting profitability, Moody's said in a report. In FY23, the sector's paid capital rose to Rs 75,300 crore from Rs 73,400 crore a year earlier, an increase of 2.6 per cent. "We expect more such transactions, as well as more merger and acquisition (M&A) deals and initial public offerings (IPOs), to improve the Indian insurance sector's capital adequacy and financial flexibility in the months ahead," it said. The report said foreign insurers would continue investing in the Indian insurance market and many foreign companies already present in the country through joint ventures could seek to increase ..

Strength of next govt's mandate to influence fiscal consolidation: Moody's

Moody's Investors Service on Monday said the strength of the next government's mandate following parliamentary elections this year will influence the medium-term trajectory for fiscal consolidation and governance in India. It said a moderation in economic conditions in the US and the persistence of subdued growth in the euro area in 2024 will further dampen demand for goods produced in Asia Pacific and curb global commodity prices, but large emerging markets like India will be able to mitigate the impact. Moody's in its 2024 outlook for APAC sovereigns said that the forthcoming elections, particularly those with greater likelihood of leadership transitions, including Indonesia, pose a degree of policy uncertainty as governments seek to manage key geopolitical relationships, especially regarding China and the US, current economic and fiscal strains, and longer-term commitments toward addressing climate change. The prevalence of social risks amid political transition could undermine .

JSW USA to raise $145 mn loan for capex Moody's affirms stable ratings

Company's reliance on long-term external financing will be critical, says agency

Ahead of China credit outlook cut, Moody's asked staff to work from home

The department heads in the agency asked its non-administrative staff in Beijing and Shanghai not to go into the office this week

Moody's issues negative outlook for banks with tightening monetary policies

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

Chinese experts push back at Moody's for cutting sovereign bond outlook

"The rating agency's understanding of how the Chinese economy works and how the Chinese government functions is not deep enough and does not reflect the reality," Feng added