Moody Rating

Says credit profile reflects strengths like large and diversified economy, but warns that country is highly exposed to climate change events

Moody's on Thursday said it has upgraded Yes Bank's rating while changing outlook to 'stable' on the back of its equity capital raise plan announced last week. The global rating agency has upgraded the private sector lender's long-term foreign currency issuer rating and long-term foreign and local currency back deposit ratings to 'Ba3' from 'B2'. It has also changed the outlook on Yes Bank's ratings to 'stable' from 'positive' and also adjusted the Baseline Credit Assessment (BCA) to 'b1' from 'b3'. "The upgrade of Yes Bank's BCA and ratings reflects the bank's planned equity capital raise, which will support its credit profile and strengthen its resilience against potential asset quality risks arising from headwinds such as higher inflation and tighter global financial conditions," Moody's Investors Service said in a release. On July 29, Mumbai-headquartered Yes Bank announced the raising of nearly Rs 8,900 crore (about USD 1.1 billion) through a mix of shares and warrants to be .

The deterioration of asset quality since the onset of the Coronavirus (Covid-19) pandemic has been moderate, and an improving operating environment will support asset quality, said Moody's

National oil companies face more credit risk due to energy transition than private ones, according to Moody's Investors Service

Analysts say the central bank is enhancing reserves to guard against a likely downgrade in India's credit rating or to ensure a bigger transfer of surplus to the revenue-starved government

Growth in govt spending is leading to fiscal stress, crowding out

After India downgrade, agency reduces long-term deposit ratings of 11 banks

Stock markets generally discount an outcome a few months in advance. They might have seen the bottom in March, unless a more ferocious second wave results in a fresh lockdown, writes Ambareesh Baliga

In comparative terms, India has been a laggard among Emerging Markets in 2020. The downgrade just makes the task of its economic recovery a little more daunting

Reliance Industries will be in focus today after the oil to telecom conglomerate yesterday said the company's board has approved a proposal to raise Rs 25,000 crore through non convertible debentures

The firm has already begun the process in a number of the hardest hit sectors such as airlines, cruise and oil firms, but the moves are about to ratchet up, two of the firm's top analysts told Reuters

The rating action concludes the review with direction uncertain that was initiated on Yes Bank's ratings on 06 March 2020. Ailing private sector bank was placed under moratorium on March 5, 2020.

Global rating agency says potentially stressed assets and low loss-absorbing buffers may add pressure to the bank's funding and liquidity, and create additional risks to its standalone credit profile

Moody's rating action assumes that BPCL's status as a government-owned entity in India will continue until at least the conclusion of the proposed sale

The rating outlooks for Bank of India, Canara Bank, Syndicate Bank and Union Bank of India are maintained at stable.

'Moody's believes that the reforms put in place have reduced the risk of a sharp increase in debt, even in potential downside scenarios' it said

Arvind Mayaram, former chief finance ministry official, calls the govt's approach completely unusual