Rating Agencies

R&I Japan upgrades India's credit rating to BBB+ with stable outlook

R&I Japan upgraded India's sovereign credit rating to BBB+ from BBB with a stable outlook, citing demographic dividend, resilient domestic demand and fiscal policy progress

Japan's R&I upgrades India's currency rating to BBB+; outlook stable

R&I upgrade comes as RBI rate cuts, GST revamp and resilient domestic demand boost confidence in India's economic outlook

CareEdge upgrades Adani Green Energy rating with 'stable' outlook

CareEdge Ratings on Monday upgraded Adani Green Energy's rating from 'AA-' to 'AA/Stable' due to its market leadership position, robust execution capabilities, and strong operational and financial profile. According to a CareEdge Ratings statement on ratings assigned to bank facilities of the company, as of June 30, Adani Green Energy Ltd (AGEL) had an operational portfolio of 15.8 GWAC, comprising 70 per cent solar, 13 per cent wind, and 17 per cent hybrid assets. In addition, the company has an under-construction portfolio of 15.1 GWAC, targeted for development in the next 4-5 years, the agency said. AGEL's strong execution track record is demonstrated by its rapid scale-up of operations in recent years and its ability to develop projects in challenging locations, such as Khavda, Gujarat, where it currently operates 5.6 GWAC. It has a long-term vision to establish a cumulative capacity of 30 GWAC in Khavda going forward. Operational performance remained robust, supported by high

Icra Q1 results: Profit rises 19% to ₹43 crore on ratings growth

Domestic rating agency ICRA on Thursday reported a 19.2 per cent growth in profit at Rs 42.8 crore its June quarter. The firm posted a profit after tax (PAT) of Rs 35.9 crore in the year-ago period. Consolidated revenue from operations increased 8.4 per cent to Rs 124.5 crore for the June quarter compared to Rs 114.8 crore a year earlier. In the current quarter, ICRA has entered into a definitive agreement to acquire 100 per cent shareholding in Fintellix India Pvt Ltd for USD 26 million (Rs 225 crore). The acquisition is subject to the completion of mutually agreed conditions as per the share purchase agreement (SPA). ICRA MD and Group CEO Ramnath Krishnan said, "Our ratings business continued to benefit from a supportive credit environment, marked by strong bond issuances and securitisation activity. "The research & analytics segment remained stable, with growth in risk management and market data offset by the residual impact of ESG project discontinuation in the previous ...

India Ratings upgrades RInfra's credit rating on non-fund based capital

Rating agency Ind-Ra on Friday upgraded Reliance Infrastructure's credit rating on its existing non-fund based working capital limits, reflecting its substantial deleveraging efforts, resulting in net zero debt with banks and financial institutions. India Ratings and Research upgraded the credit rating from IND D' to IND B / Stable / IND A4'. Additionally, the company said in a regulatory filing that Ind-Ra has withdrawn the ratings assigned to the earlier proposed fund-based and non-fund-based limits, which were not raised or availed by the company. This upgrade represents a significant improvement of three notches in the company's credit profile, achieved after six years at the IND D rating level, it stated. The upgrade also reflects the company's substantial deleveraging efforts, resulting in net zero debt with banks and financial institutions, it stated. The improvement in rating also reflects Reliance Infra's timely servicing of standalone debt obligations for three consecuti

India Ratings removes IndusInd Bank from Rating Watch negative status

Concerns over stability of bank's franchise to persist says agency

Stress in personal loans to alter asset quality trajectory: CareEdge

CareEdge expects a marginal rise in credit costs and gross NPAs in FY26 due to stress in unsecured personal loans and microfinance, though provisioning remains robust

Budget 2025 tax cuts to boost demand and consumption: Rating agencies

Fitch Ratings said that the budget will be broadly neutral for growth and continued to project real GDP expansion of 6.4 per cent in FY25 and 6.5 per cent in FY26

AI transforms credit rating agencies, enhancing accuracy and efficiency

AI and machine learning tools can analyse a variety of information like financial statements, market trends and price fluctuations. They continuously learn and adapt

Brickwork Ratings settles matter with mkt regulator Sebi for Rs 1.54 crore

In January 2020, Sebi and the Reserve Bank of India had undertaken a joint inspection of Brickwork, where the two regulators found "several irregularities"

Corporate credit robust in H1, 202 issuers got rating upgrades: Ind-Ra

India Ratings and Research (Ind-Ra) on Tuesday said corporate credit profile continued its robust performance in the first half of the current fiscal with 202 issuers getting rating upgrades. Large corporates and A-rated corporates witnessed a higher number of upgrades in the first half of the fiscal, taking the downgrade-to-upgrade (D/U) ratio to a low at 0.31 for the first half, said Arvind Rao, Head of Credit Policy Group, Ind-Ra. "The corporate credit profile continued its robust performance in 1HFY25, the fourth year in a row. During this period, Ind-Ra upgraded the ratings of 202 issuers, representing 20 per cent of the reviewed portfolio, while the ratings of 62 issuers were downgraded," Ind-Ra said in a statement. Rao further said that the D/U ratio is expected to moderate marginally in the current fiscal, compared to 0.37 in the 2023-24 fiscal. "We expect issuer rating upgrades to outpace downgrades in the second half of the current fiscal," Rao said. Ind-Ra said that dur

PLI scheme to draw Rs 3-4 trn investments over 4 yrs; boost pvt capex: ICRA

The PLI scheme is expected to attract investments of Rs 3-4 lakh crore in the next four years and generate 2 lakh jobs as large projects in sectors, including semiconductor, solar module and pharmaceutical intermediaries, are expected to take off, a top Icra executive said on Wednesday. Icra Executive Vice President and Chief Ratings Officer K Ravichandran said that going ahead private sector capex is expected to pick up in oil and gas, metals and mining, hospitals, healthcare and cement sectors. However, taking the private sector capex to record high levels would require the government to give some tax breaks so that people have more disposable income in their hands. "Under the PLI scheme, we are expecting Rs 3-4 lakh crore of additional investments in the next 3-4 years. Going ahead, semiconductor, solar module, and pharmaceutical intermediaries are some areas where large projects are expected to happen which can be capital and employment-intensive. They would be generating 2 lakh

Passing major reforms may prove difficult for next govt: Rating agencies

Rating agencies, such as Fitch and Moody's, said broad policy continuity may persist

Ratings and reforms

Fiscal position should be improved with sustained growth

Care Ratings Q4 results: Net profit surges 35% to Rs 34.8 crore

Care Ratings on Friday reported a 35 per cent jump in its standalone net profit at Rs 34.8 crore in the fourth quarter ended March 31, 2024. The domestic rating agency had a profit after tax of Rs 25.9 crore in the January-March quarter of the 2022-23 fiscal. Total income rose 13 per cent to Rs 88.5 crore during the March quarter, Care Ratings said in a late night regulatory filing on Thursday. For the 2023-24 fiscal, the standalone net profit rose 15 per cent Y-o-Y to Rs 119.4 crore. Total income also grew 15 per cent to Rs 330 crore in the 2023-24 fiscal. The board of Care Ratings has declared a final dividend of Rs 11/share, which will take the total declared for the year to Rs 18/share. Shares of Care Ratings were trading at Rs 1,104.20 on Friday in early trade on BSE, up 0.29 per cent over the previous close.

Moody's Q4 results: Profit below estimates, revenue up 15% at $1.48 bn

The company's credit ratings segment posted revenue of $684 million, compared with analysts' average estimate of $699 million, according to LSEG

CRISIL upgrades rating on Adani Power's bank loan facilities to 'AA-'

Crisil Ratings has upgraded its ratings on Adani Power's Rs 38,000 crore of bank loan facilities to 'AA-', saying the business and financial risk profile of the company has seen "strong improvement". The loan facilities were rated 'A' with a stable outlook earlier. "The rating upgrade follows the strong improvement in the business and financial risk profiles of APL," Crisil Ratings said in a report. The upgradation is driven by better-than-expected operating performance backed by timely commissioning and ramp-up of the Godda power plant (1.6 GW), Mahan power plant (1.2 GW), full recovery of pending regulatory dues related to claims for fuel costs as pass-through under change in law clauses of existing power purchase agreements (PPAs) and continued improvement in receivables, it said. "The rating also factors in the completion of most of the regulatory investigations into Adani Group. Regulatory investigations in two remaining allegations are underway and are expected to be complete

Rating agencies cautious on India's sovereign credit profile post-Budget

Fitch Ratings said that though the interim budget presented was broadly in line with the expectations, it won't change the sovereign credit profile from 'BBB-' with a stable outlook

Bank credit expansion projected at 15% in FY24, 12% in FY25: ICRA

Rating agency Icra on Wednesday revised upward its bank credit growth projection at 14.9-15.3 per cent this fiscal, but said the same will lose steam and grow at 12 per cent next fiscal. At 14.9-15.3 per cent, the system level credit expansion in absolute terms will be Rs 20.4-20.9 lakh crore, it said, adding this will be the highest ever incremental bank credit growth and would surpass the previous high of Rs 18.2 lakh crore recorded in FY23 at a growth rate of 15.4 per cent. The agency had earlier estimated a 12.8-13 per cent credit demand for this fiscal. However, citing the rising global headwinds and also the higher base coupled with the challenges in deposit mobilisation, the agency said it expects the rate of incremental credit expansion to slow down to Rs 19-20.5 lakh crore or 11.7-12.6 per cent in FY25. Weaker export demand in certain sectors, softer commodity prices, and challenges in deposit mobilisation could temper bank credit growth in FY2025, it added. Further, the

S&P upgrades Adani Ports, Adani Electricity rating on cash flow optimism

For Adani Electricity, the agency expects its ability to generate operating cash flow compared to its debt to improve to above 10% in fiscal 2024 and 2025