Page 6 - S&p

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.

Recovery underway in financial sector, upgrades of 4 institutions: S&P

S&P Global Ratings on Tuesday said a strong recovery is underway in the Indian financial sector and upgraded four financial institutions, including Union Bank of India and Bajaj Finance. The move reflects S&P's view that domestic financial institutions in India will continue to improve their asset quality, benefiting from good economic prospects and structural improvements in the operating conditions. "S&P Global Ratings today upgraded Bajaj Finance, Hero FinCorp, Shriram Finance, and Union Bank of India... A strong recovery is underway in the Indian financial sector," S&P said. S&P expects India's financial institutions, especially the public sector banks, to sustain their improvement in capital positions. Bank earnings will also likely be comparable to other emerging market peers, although margins could decline as the banks reprice deposits. "We expect earnings for our rated non-bank finance companies to remain healthy despite pressure from the rising cost of ...

S&P upgrades rating for Bajaj Finance, UBI, Shriram Finance & Hero Fincorp

The rating upgrade reflects the view that they will continue to improve their asset quality, benefiting from good economic prospects and structural improvements in operating conditions

RBI's pivot to rate cuts to begin only in early 2024: Rating agency S&P

In India, under the assumption of normal monsoons, the rating agency expected the headline consumer inflation to soften to 5.0 per cent in fiscal 2024 (FY24) from 6.7 per cent in FY23

ONGC to maintain financial flexibility as earnings steady, says S&P

This should help the company maintain its good credit quality, despite its investment plans and healthy shareholder distributions, the rating agency said in a statement

Reliance's operating performance to remain resilient over 2 years: S&P

Reliance Industries Ltd's operating performance is likely to remain resilient over the next two years, as the firm's growing presence in the digital and retail segments will temper softer earnings in the energy business, S&P Global Ratings said on Thursday. The rating agency affirmed its 'BBB+' rating - equivalent to the sovereign rating assigned to India - to Reliance (RIL) with a stable outlook, reflecting the view that RIL's cash flows will help it preserve its financial profile, despite elevated investments over the next 24 months. In a statement, S&P said Reliance's expansion plans for the next two years are manageable. Capex will remain elevated, but lower than the levels of fiscal 2023 (ended March 31, 2023). The company's leverage will remain at a level commensurate with the current rating, it said. "RIL's operating performance will remain resilient over the next 24 months," it said. "Earnings growth from RIL's digital and retail segments will continue. This will ...

As US credit risk looms, ex-S&P officials see 2011 downgrade as vindicated

That downgrade came days after Washington narrowly averted a default, but S&P went ahead, cutting the U.S. pristine "AAA" to "AA-plus," citing heightened political polarization

Indian banks' profitability to stablise, asset quality to improve: S&P

Several large public sector banks saddled with high volume of weak assets, says agency

S&P Global unveils enhanced employee benefits with 'People First 9.0'

S&P Global on Tuesday launched "People First 9.0", the latest iteration of its enhanced global benefits policy across all its markets, including India.

Manufacturing PMI at 4-month high in April on robust demand for new orders

Manufacturers have 'abundant opportunities to keep powering ahead', says S&P Global survey

Axis Bank has adequate capital to absorb quarterly loss, says S&P report

Bank's ability to pay dividends is protected, net credit costs have declined: Ratings agency

S&P affirms HDFC Bank's long-term issuer credit rating at 'BBB-'

The bank's strong management and governance structure should help in the planned merger of mortgage lender Housing Development Finance Corporation Ltd (HDFC) with itself