Page 4 - S&p Global Ratings

Credit losses set to decline for most Asia Pacific banks, says S&P

Credit losses are set to fall across most Asia Pacific banking systems over the next two years, S & P Global Ratings said on Tuesday.This is partly because targeted assistance to stretched borrowers will likely continue in many places until pandemic-related challenges substantially abate."Asia Pacific banks should safely avoid a 'cliff effect' even as extensive relief measures are progressively removed," said S & P Global Ratings credit analyst Sharad Jain.Moratoriums on loan repayments -- together with fiscal, monetary and policy support -- have helped cushion the blow to borrowers in Asia Pacific from the Covid-19 outbreak and containment measures.Repayment moratoriums have fallen to less than 5 per cent of system loans for a number of Asia Pacific countries compared with between 6 and 80 per cent at the height of pandemic.S & P forecast credit losses for the 12 larger banking systems in Asia-Pacific: Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, New ...

S&P Global Ratings affirms BB/B ratings on IDBI Bank with negative outlook

S & P Global Ratings has affirmed BB long-term and B short-term foreign currency issuer credit ratings on IDBI Bank.It also affirmed BB programme rating on the senior unsecured notes under its medium-term notes (MTN) programme and then withdrew the ratings at the bank's request.S & P said the outlook was negative at the time of withdrawal. "We affirmed the ratings because we expect IDBI Bank's improving financial performance to offset the risk of bank's weakening link with the government."The Union Cabinet has approved strategic disinvestment along with the transfer of management control in IDBI Bank. "We considered this as a key transition risk for the rating over the next 12 to 18 months."The high uncertainty associated with an eventual timeline of divestment raises further transition risk. S & P said the strategic sale in IDBI Bank will likely be challenging in the current year owing to the bank's low equity valuation and wary investor sentiment under Covid-19.S & P

India must start its road to economic recovery with aggressive spending

Well-executed policy measures will help meet the challenge of the coronavirus pandemic.

$210 mn daily output loss in India over April-June in severe scenario: S&P

S&P Global Ratings estimates $210 million in lost output daily in India due to second Covid wave over April-June in a severe scenario model.

Faster global growth will boost Asia Pacific's economic recovery: S&P

Asia Pacific's economic recovery from Covid-19 will be boosted by US stimulus and stronger global demand, S & P Global Ratings said on Thursday.Vaccine rollout in the region may lag other parts of the world but there will be enough progress to lift consumer spending and domestic demand later in 2021, it said in a report titled 'Economic Outlook Asia Pacific Q2 2021: Three-Speed Recovery Will Benefit From Faster Global Growth."S & P Global Ratings revised upward its growth forecast for Asia Pacific to 7.3 per cent for 2021 from 6.8 per cent previously.A faster-than-expected global vaccine rollout, a large dose of US stimulus and upside surprises in trade and manufacturing pushed its forecasts higher and offset recent weakness in household spending."We also expect gradual vaccine coverage in the region to encourage a virtuous cycle of higher spending on services, more jobs and rising incomes to power the next leg of recovery," said Shaun Roache, Asia Pacific chief economist at S

India and Philippines most vulnerable to risks of a 'taper tantrum': S&P

S&P Global Ratings on Wednesday said the recovery across Asia's emerging economies would withstand rising US yields so long as this reflects an improving growth outlook and reflation rather than a monetary shock. US yields are rising mostly due to expectations of higher growth, rather than fears of imminent tightening, or monetary-policy shock. This time around, initial conditions in Asia are sturdier than they were in 2013, the rating agency said. It said current account surpluses, low inflation (for the most part), higher real interest rates, and fatter foreign-exchange reserve buffers give regional policymakers more flexibility and should allow central banks to remain focused on supporting recovery. "The recovery across Asia's emerging economies should withstand rising US yields so long as this reflects an improving growth outlook and reflation rather than a monetary shock," S&P Global Ratings Asia-Pacific Chief Economist Shaun Roache. The US-based agency, however, said ...

Emerging Asia's recovery can withstand reflation trade: S&P Global Ratings

The reflation trade that is lifting US yields will not hit Asian emerging markets' financial conditions and growth outlook as much as during the taper tantrum of 2013, S & P Global Ratings said on Wednesday."The recovery across Asia's emerging economies should withstand rising US yields so long as this reflects an improving growth outlook and reflation rather than a monetary shock," said Shaun Roache, Asia Pacific Chief Economist at S & P.In 2013, US yields leaped after the Federal Reserve indicated it will begin unwinding its quantitative easing programme. The resulting panic over rising credit costs led to sharp outflow from emerging markets, including Asia's, and forced central banks to hike interest rates."Not all yield shocks are created equal," said Roache.The report highlighted three important factors that determine vulnerability to external shocks in Asia and which are relevant today.One: the nature of the shock. Yields can rise for more than one reason. Some are more .

Indian Railway Finance Corp's IPO will not dent govt support: S&P Global

S & P Global Ratings has said that Indian Railway Finance Corporation's (IRFC's) initial public offering does not alter its view of government support to the company.The government, which has been the sole owner of IRFC since its inception in 1986, holds about 86 per cent shares after the listing. In the IPO exercise, the government sold 5 per cent stake and additional 10 per cent shares were issued to the market."The divestment does not affect our assessment of IRFC's critical link and integral role to the government. The IPO plans were announced as far back as 2017 and we had factored the potential share sale in our ratings on the company since then."S & P said it continues to see an almost certain likelihood of extraordinary government support for IRFC in the event of financial distress. There is no change to the company's business model and it remains the sole financing arm of the Ministry of Railways.IRFC will remain integrally linked to the government. The government ...

S&P Global Ratings revises Tata Steel outlook to stable on earnings rebound

Company's leverage remains high, limiting further rating upside from current 'B+'

Global debt to hit $200 trillion, but no major crisis anytime soon: S&P

LONDON (Reuters) - Global debt is set to reach $200 trillion, or 265% of the world's annual economic output, by the end of the year, S&P Global has forecast - although it doesn't expect a crisis any time soon.

Bank stocks not pricing in asset quality risks, investors must book profits

As Supreme Court vacates stay on NPA recognition, bad loans are set to spike; weak growth may also compound the problem

Top headlines: Modi defends farm laws, S&P retains India GDP forecast

Bengaluru office market to see rent spike, Minister says Centre will vaccinate around 300 million people, and more top headlines of the day

Second sovereign downgrade wave coming, major economies at risk: S&P Global

The rating agency has already downgraded or cut the outlooks on nearly 60 countries this year, but only relatively few have been higher-rated richer nations

S&P Global sees US, European corporate default rates doubling in 9 months

LONDON (Reuters) - The COVID-19 shock will double company default rates across the United States and Europe over the next 9 months, ratings agency S&P Global said on Tuesday, although it noted that the record downgrade pace of recent months was now slowing.

Covid-19: S&P Global sees US, European corporate default rates doubling

LONDON (Reuters) - The COVID-19 shock will double company default rates across the United States and Europe over the next 9 months, ratings agency S&P Global said on Tuesday, although it noted that the record downgrade pace of recent months was now slowing.

S&P Global Ratings expects Indian economy to contract 9% in fiscal 2021

BENGALURU (Reuters) - S&P Global Ratings said on Monday that it was expecting India's economy to shrink by 9% in the fiscal year ending March 31, 2021, larger than its previous estimate of a 5% contraction, as the country reels under the impact of the COVID-19 pandemic.

TCS may see slower revenue growth, profitability over 12-18 months: S&P

"We now expect TCS' revenue to rise 0-1 per cent in the fiscal year ending March 31, 2021, compared with growth of 5.3 per cent in fiscal 2020," it said

Glenmark Pharma surges 6% as S&P Global sees stable cash flow in 2 years

Glenmark's operating cash flows, lower capital investments, and plans to channel proceeds from the sale of non-core assets to pay debt should improve its ratio of funds from operations to debt

Coronavirus will cost banks over $2 trillion in losses on loans: S&P Global

Around 60% of the losses are likely to be in Asia-Pacific, it added

S&P to weigh agri reforms, easing of bad loan for future India ratings

Last week, S&P Global Ratings had retained India's rating at lowest investment grade 'BBB-' for 13th year in a row