Page 12 - Fitch Ratings

Relaxing FDI limit in insurance intermediaries to boost distribution: Fitch

The Budget proposal of relaxing foreign investment limit in insurance intermediaries will strengthen distribution capabilities and increase international involvement, particularly from developed markets, Fitch Ratings said Monday. The Budget 2019-20 tabled in Parliament on July 5, permitted foreign companies to own up to 100 per cent in insurance intermediaries, including insurance agents, brokers, loss assessors and surveyors, from the 49 per cent, to attract more foreign direct investment into the industry. "India's proposed removal of the foreign-ownership cap on insurance intermediaries is likely to increase competition, strengthen distribution capabilities to enhance insurance penetration and boost M&A in the medium to long term," Fitch Ratings said in a statement. The proposed change is only applicable to insurance intermediaries while the cap on foreign ownership in insurance companies will remain at 49 per cent. Still, the government has indicated that it may take further .

Budget 2019 lacks meaningful fiscal consolidation plan: Fitch Ratings

It further said some measures could weigh on growth over time, such as higher import duties on many products to 'provide a level playing field to domestic industry'

Fitch downgrades ratings for Axis Bank and ICICI Bank to BB+ from BBB-

The rating action in case of two Indian private banks comes after Fitch lowered its midpoint for India's operating environment to 'bb+' from 'bbb-'

Fitch retains India's credit rating at 'BBB-' with a 'stable outlook'

The rating agency said India's economy is expected to grow at 6.8% in the financial year ending March 2020

Fitch cuts India's growth forecast to 7.2% in FY19 on higher financing cost

It forecast Indian rupee to weaken to 75 to a dollar by end of 2019

General govt debt is high, it hasn't changed: Fitch Ratings' McCormack

Fitch Ratings retained India's sovereign rating at BBB-, the lowest investment grade rating last week

Govt move on fuel prices to hit OMCs' profitability, credit metrics: Fitch

The ratings of the three firms, IOC, BPCL and HPCL will be unaffected as they are driven by state support, said Fitch

Currency volatility to have limited impact on India's credit profile: Fitch

Fitch said the recent sell-offs in Indian and Indonesian currency markets underline their sensitivity to shifts in global sentiment, and suggest further bouts of pressure are likely

Outlook on Indian banks to stay negative over weak core capital: Fitch

Indian banks need to improve capital base against mounting bad debt and poor financial performance, Fitch said

Fitch affirms HMEL's default rating, sees no support from GOI, ONGC

HMEL's standalone credit profile is at 'BB-', and reflects robust refining operations from its high-complexity refinery, strong profitability and high leverage

Fitch downgrades ICICI Bank, revises Axis Bank rating to negative

Axis Bank's capital buffers are less comfortable for its current rating despite raising of fresh capital

Fitch downgrades SBI, BoB viability rating as asset quality deteriorates

The banks' core capital buffers appear more vulnerable to moderate shocks, the rating agency says

Fitch says emerging markets vulnerable as debt balloons to $19 trillion

Capital flows to emerging markets may diminish as US and global investors get higher yields on US assets

We see India's fiscal deficit, debt higher than peers in FY18: Fitch chief

Deterioration in balance sheets of PSU banks in excess of Fitch expectations may spur rating downgrade, says Thomas Rookmaaker, Director, Sovereign Ratings, Fitch Ratings

Major reforms undertaken, India deserves rating upgrade, says Garg

The government had made a strong pitch with Fitch for an upgrade in ratings after rival Moody's Investors Service in November last year gave the country its first sovereign rating upgrade since 2004

Fitch retains India's sovereign rating at the lowest investment grade

It pointed to weakness in fiscal consolidation and the "difficult but improving" business environment

Fitch raises outlook on JSW Steel's issue default rating to stable

The agency has also affirmed the company's senior unsecured rating and the rating on its senior unsecured notes at 'BB'

Fitch warns of ratings cut for China if data revisions prove major

Recent falsification by provincial governments may highlight shortcomings in the auditing process

GDP can grow at 6.7% average for next 5 years: Fitch

The GDP recovered to 6.3 per cent in the September quarter from a six-quarter-low of 5.7 per cent in the preceding June quarter

Fitch may revise banks' rating if recapitalisation done early

The agency said has had a negative sector outlook on the country's banks for many years.