Page 5 - S&p

India's economy showed strong growth, retained 6% forecast in FY24: S&P

S&P Global Ratings on Wednesday said India's economy has a track record of strong growth and retained its 6 per cent growth forecast for current fiscal year. In Asia-Pacific Credit Outlook 2024 titled 'Slowing Dragons, Roaring Tigers', S&P said gradual capital deepening, favourable demographics, and improving productivity are essential growth factors. "India's economy has a track record of strong growth. We expect this momentum to continue and forecast growth of 6 per cent for FY 2024, then 6.9 per cent for FY 2025 and FY 2026," S&P said. It said India's economic growth shines brightly. However, its yields remain higher, as they have been historically, which puts additional pressure on the cost of funding India's large debt stock. While growth supports market confidence and revenue generation, rates dynamics will be an additional determinant of India's debt trajectory over the next few years, the US-based rating agency said. Gradual capital deepening, favourable ...

India set to be world's third-largest economy by 2030, says S&P Global

By 2030, India's GDP is forecast to surpass Germany's too

Bajaj Finance's equity raising to boost already solid capital base: S&P

The rating agency said BFL's RAC ratio is unlikely to sustain above 15 per cent during the financial years 2025-2026

Over 3 million demat accounts opened in Sept for second consecutive month

The country's two depository firms, Central Depository Services and the National Securities Depository, added about 3.1 million new accounts

China services activity expands at slowest pace in September this year

"Services supply and demand grew at a slower pace in September, as market conditions improved less than expected," said Wang Zhe, senior economist at Caixin Insight Group.

India manufacturing PMI grows to three-month high in August: S&P Global

'Sharp expansion' in international sales show companies' focus on international business, says survey

Morgan Stanley backed RE firm Continuum to refinance $400 mn bonds

Company's interest savings will likely be minimal despite a lower funding cost, says S&P

Indian economy may grow by average 6.7% till FY31, says S&P Global

GDP to nearly double to $6.7 trn by then, it says

July Services PMI rises most since June 2010 on robust global demand

According to S&P, finance & insurance sector was the "brightest spot" regarding business activity and new orders, topping the growth rankings in both instances

S&P lowers Sri Lanka's long-term local currency credit rating to 'CC'

Domestic debt restructuring plan triggers action

Weak loans of banks to fall to 3-3.5% of gross advances by March 2025: S&P

S&P Global Ratings on Thursday projected Indian banking sector's weak loans will decline to 3-3.5 per cent of gross advances by March 31, 2025 as structural improvements and good economic prospects would support the resilience of financial institutions. In its mid-year global bank outlook, S&P said India's economic growth prospects should remain strong over the medium term, with GDP expanding 6-7.1 per cent annually in fiscal years 2024-2026. India to remain the fastest-growing economy in Asia-Pacific, and the fastest-growing large economy globally, it said. "We project the banking sector's weak loans will decline to 3-3.5 per cent of gross loans by March 31, 2025 on the back of structural improvement, including healthy corporate balance sheets, tighter underwriting standards, and improved risk-management practices," S&P Primary Credit Analyst Deepali Seth Chhabria said. S&P also said that stronger balance sheets and higher demand should boost bank loan growth, but ...

Reform momentum likely to pick up after Lok Sabha elections next year: S&P

Reform momentum is likely to pick up only after the Lok Sabha elections next year and a little bit of boost to the expenditure in an election year would not adversely impact India's fiscal deficit target, S&P Global Ratings Director Andrew Wood said on Wednesday. "Our expectation is major reforms in the country are probably unlikely right up to the election cycle and until 2024 Parliamentary elections are over. After that perhaps, reform momentum could pick up, particularly if there is a very strong mandate for the next government," Wood said. S&P anticipates that the central government will meet its modestly lower fiscal deficit target and also state governments will be consolidating their finances gradually overtime. "Even if we see a little bit of boost to the expenditure in an election year, in the run up to the elections, revenue growth also remains healthy in India and that has been supporting the gradual pace of fiscal consolidation," Wood said. He was replying to a ...

Crisil reports 10% growth in profit to Rs 150.6 cr in Apr-Jun quarter

Largest rating agency Crisil, majority owned by the Wall Street-based S&P, Wednesday reported a 10 per cent growth in net income at Rs 150.6 crore for the second quarter ending June. The city-based rater said standalone income from operations for the reporting quarter rose 15.3 per cent to Rs 771.0 crore and the consolidated income rose 12.1 per cent to Rs 788.8 crore. The company also announced an interim dividend of Rs 8 per share. Amish Mehta, the managing director & chief executive said the overall numbers were impacted during Q2, due to unfavourable foreign exchange movements compared to the same quarter last year. Slowing global growth is expected to progressively weigh on domestic activity, he said, adding while domestic demand has been resilient so far, it can moderate later this fiscal as the full impact of rate hikes of the recent past manifests and the pent-up demand in contact-based services wanes.

Vedanta Resources needs to be proactive about refinancing $1 bn bond: S&P

In April this year, the rating agency said that a credible refinancing plan at least six months before maturity, due in Jan 24, would be important to maintain the current rating

India lags regional peers on fiscal consolidation: S&P Global's Louis Kuijs

In a Q&A, the Asia Pacific Chief Economist of S&P Global Ratings charts the key reforms India needs ahead of the general elections next year

India firms' deleveraging to slow down; little room for rating upgrade: S&P

Rated companies in good credit shape due to growth and accommodative balance sheets, says agency

Corporate India's health insurance safety net doesn't cover everyone

Majority of staff in key business sectors lack protection, shows data from listed companies

S&P 500 advances, Treasury yields touch 3-month high on solid economic data

NEW YORK (Reuters) - The S&P 500 advanced on Thursday and benchmark Treasury yields hit their highest level since early March as robust economic data helped ease recession fears but increased the odds of the Fed keeping its restrictive policy in place for longer than expected.

India's average growth rate likely to be 6.7% till FY27, says S&P

Indian economy is expected to clock an average growth rate of 6.7 per cent till 2026-27 fiscal driven by domestic consumption, S&P Global Ratings Senior Economist (Asia Pacific) Vishrut Rana said on Wednesday. He said the economic growth in the current fiscal is expected to come in around 6 per cent, lower than 7.2 per cent clocked in 2022-23. "We are seeing some headwinds from the trade side which is affecting activity and that is one of the factors that is affecting growth this year," Rana said at a webinar. The factors that are driving the slowdown from 7.2 per cent growth last fiscal are weaker external environment, moderation in pent-up demand, and softening private consumption activity, Rana said, adding, with tighter monetary policy there is expected to be some impact on consumer demand. "We expect 6.7 per cent growth on average over the course of our forecast horizon which extends to FY26-27. This fiscal (2023-24) we expect growth to be 6 per cent," Rana said, adding that .

India's rating upgrade hinges on sustainable fiscal consolidation: S&P

MUMBAI (Reuters) - S&P Global Ratings could consider an upgrade in India's sovereign rating if the country's fiscal metrics improve on a sustained basis and inflation is persistently lower, aided by monetary policy actions, an analyst at the agency said on Wednesday.