Higher levels of global government debt as a result of the coronavirus pandemic have made sovereign creditworthiness increasingly sensitive to interest rate changes.
Fitch Ratings said the shock to economic activity from the latest wave of Covid-19 pandemic will be less severe than the one in 2020
India is likely to breach its fiscal deficit target in the financial year to March 2022 mainly due to revenue shortfall, Fitch Solutions said Friday. The government is targeting a deficit between revenue it earns and what it spends at 6.8 per cent of the gross domestic product (GDP) in FY22 (April 2021 to March 2022). "We at Fitch Solutions forecast the Indian central government deficit to come in at 8.3 per cent of GDP in FY22," it said. "Revenue shortfall remains the main driver of our wider deficit view, as we expect the government to maintain its spending targets." Fitch Solutions had previously projected a fiscal deficit of 8 per cent. "The main driver of our deficit forecast revision is a downward revision to our outlook for revenues, given that the flare-up in COVID-19 cases in India and containment measures in place will hamper India's economic recovery, which will have a negative impact on fiscal revenues," it said. Central government expenditure is likely to be around t
Fitch Ratings has affirmed Future Retail Ltd's (FRL's) issuer default rating at 'C' and the rating on its USD500 million 5.6 per cent senior secured notes due 2025 at 'C'
The unprecedented crisis has highlighted the need to increase investment in the healthcare sector: Fitch
India remains badly placed to tackle the rapid spread of Covid-19 despite several reforms and the unprecedented crisis has highlighted the need to increase investments in the healthcare sector
Fitch Solutions sees RBI keeping benchmark interest rates unchanged during the fiscal to March 2022 following its decision to buy Rs 1 trillion of government bonds
Agency already sees moderately deteriorating environment for sector in 2021. Headwinds will intensify if rising infections and follow-up measures to contain the virus further affect business
A rise in yields for long-dated sovereign bonds will result in near-term losses for the A-Pac banks as they recognise valuation changes on their available-for-sale bond portfolios, according to Fitch
Driven by sustained demand for housing and supportive government policy, residential building will see a strong rebound in 2021 and robust growth over the coming decade, according to Fitch Solutions
The company says the proportion of cargo from western and eastern coasts will shift to 60 percent and 40 percent respectively from 67 percent and 33 percent currently
Fitch Ratings has assigned Indian Railway Finance Corporation's (IRFC's) proposed US dollar Regulation senior unsecured notes a rating of BBB-minus.The proposed notes will be issued under IRFC's existing four billion dollars global medium-term note programme.The net proceeds from proposed notes will be used for funding acquisition of rail assets which IRFC will lease to Indian Railways, and to meet debt-financing requirements of various entities in the railway sector.Fitch said the proposed notes are rated in line with IRFC's issuer default rating on the basis that the notes issued under the programme will constitute direct, unconditional and unsecured obligations of IRFC and rank pari passu (on equal footing) with all its other present and future outstanding unsecured and unsubordinated obligations.Meanwhile, S & P Global also assigned BBB-minus rating to long-term foreign currency issue rating to IRFC's proposed benchmark size senior unsecured US dollar notes.
Fitch said discoms are saddled with huge accumulated losses due to a combination of crippling debt, expensive power, technical and commercial losses, and less-than-commensurate increases in tariffs
We see depreciatory pressure on the rupee due to worsening terms of trade from rising oil prices, further monetary easing, it said
Hikes come at a time when boost in some categories from pent-up demand and festive spending fades, and the economic impact from the pandemic reasserts itself, rating agency says
Says Covid vaccines aren't likely to reach majority even in a year, Cautions against weak balance sheets, challenges in financial sector
The projections compare to a GDP growth of 4.2 per cent in 2019-20 (April 2019 to March 2020) fiscal and 6.7 per cent annual expansion between 2015 and 2019
For the current fiscal, Fitch Ratings has projected a 10.5 per cent contraction in Indian economy
The development comes at a time when the economy is limping back to normalcy after a stringent lockdown that lasted over two months
Fitch Ratings said the potential privatisation of BPCL is an "event risk" as there is little information about bidders and potential transaction structure