Fitch said for developed market sovereigns, multi-notch downgrades have taken place historically amid large and sudden increases in government debt and this looks to be a certainty in many countries in 2020.
Fitch Ratings on Friday said it has slashed India's growth forecast for the current fiscal to a 30-year low of 2 per cent, from 5.1 per cent projected earlier, as economic recession gripped global economy following the lockdown due to COVID-19 pandemic.
Fitch Ratings on Thursday said it has taken Bharti Airtel off 'watch negative' and affirmed the telecom operator's long-term foreign currency issuer default rating at 'BBB-' with a stable outlook.
The Union Budget 2020-21 implies a modest degree of slippage from previous targets to consolidate public finances, it said. "However, its contents are consistent with our expectations when we affirmed the country's sovereign rating at 'BBB-'/Stable in December 2019."
India's non-banking financial companies will look increasingly to offshore financing as local funding conditions may remain under pressure, Fitch Ratings said on Tuesday.
Fitch Ratings has placed Bharti Airtel Ltd on 'rating watch negative' over unpaid regulatory dues arising from a recent Supreme Court ruling.
Fitch Solutions Macro Research on Tuesday said it has revised downwards its 2019 global steel price forecast as global prices continue to be hammered by poor sentiment amid ongoing US-China trade tensions and increasing downside risks to the global economy.
Fitch was optimistic on India's growth, saying that the monetary and regulatory easing from the Reserve Bank of India, along with a recovery in portfolio inflows, should support a recovery in credit to the private sector and reverse the drag from the negative credit impulse.
Ahead of BJP-led NDA government presenting the final budget of its tenure, Fitch Ratings on Thursday warned of a second consecutive year of fiscal slippage in the event of Finance Minister Piyush Goyal resorting to populist spending to win over lost vote base.
Fitch estimated India's GDP growth to be 7 per cent and 7.1 per cent in financial years 2019-20 and 2020-21 respectively. Indian economy grew 6.7 per cent in 2017-18 fiscal.
"We have revised up our forecast for FY2018-2019 growth to 7.8 per cent from 7.4 per cent on the back of the better-than-expected 2Q18 outturn. India's growth likely peaked in 2Q18 (April-June) though," Fitch said.
It projected India's growth at 7.3 per cent in current the fiscal and further to 7.5 per cent in 2019-20. Growth is projected to be 6.7 per cent in the last fiscal, ended March 31.
The 2018-19 Union Budget unveiled yesterday contains a number of policy measures with the potential to support economic demand and social wellbeing.
It also cut GDP growth forecast for 2018-19 fiscal year to 7.3 per cent from 7.4 per cent predicted in its September Global Economic Outlook (GEO).
“GST will unify the indirect tax system and remove domestic barriers to trade, which should support productivity gains and GDP growth over the long term,” Fitch said.
'It appears that the cash squeeze of November 2016 whereby the government pulled 86 per cent of cash in circulation out of the economy virtually overnight finally did have a material impact on spending,' it said
Anil Ambani-led Reliance Communications is struggling to repay Rs 45,000 crore of debt to its lenders.
Global ratings agency Fitch today said that the Indian economy will grow by 7.1 per cent in the current fiscal before stepping up to 7.7 per cent in the next two financial years.
Global credit rating agency Fitch Ratings on Friday said demonetisation has had a negative impact on repayment of Indian auto loans and that it would take a couple of months for collections to come back to normal levels.
Chennai: Global credit rating agencies -- Moody's Investors Service (Moody's) and Fitch Ratings -- termed India's fiscal budget for 2016-17 as credit positive for sovereign rating, but pointed out certain uncertainties."The budget is modestly credit
Top News
Latest News
