Credit Rating Agencies

India Ratings and Research (Ind-Ra) on Tuesday said corporate credit profile continued its robust performance in the first half of the current fiscal with 202 issuers getting rating upgrades. Large corporates and A-rated corporates witnessed a higher number of upgrades in the first half of the fiscal, taking the downgrade-to-upgrade (D/U) ratio to a low at 0.31 for the first half, said Arvind Rao, Head of Credit Policy Group, Ind-Ra. "The corporate credit profile continued its robust performance in 1HFY25, the fourth year in a row. During this period, Ind-Ra upgraded the ratings of 202 issuers, representing 20 per cent of the reviewed portfolio, while the ratings of 62 issuers were downgraded," Ind-Ra said in a statement. Rao further said that the D/U ratio is expected to moderate marginally in the current fiscal, compared to 0.37 in the 2023-24 fiscal. "We expect issuer rating upgrades to outpace downgrades in the second half of the current fiscal," Rao said. Ind-Ra said that dur

The credit rating agency expects India's GDP to grow by 6.8 per cent for the full fiscal year 2024-25, lower than the 8.2 per cent achieved in 2023-24

Governor of the Reserve Bank of India Shaktikanta Das said that India is capable of meeting its external payment obligations and a credit ratings upgrade should happen soon

Markets regulator Sebi has issued new guidelines to streamline operations and enhance the ease of doing business for credit rating agencies. The circular introduces specific timelines for dealing with appeals made by companies regarding rating actions carried out during periodic surveillance of ratings. These modifications will be applicable, with effect from August 01, 2024, the Securities and Exchange Board of India (Sebi) said in a circular on Thursday. "In order to promote ease of doing business and bring about uniformity in dealing with appeals, based on consultation with stakeholders, including CRAs (Credit Rating Agencies), it has been decided to provide specific timelines for dealing with appeals made by the issuer in respect of rating actions carried out pursuant to periodic surveillance of ratings," it added. The changes mandate that CRAs communicate ratings to companies within one working day of the rating committee meeting, with an outer limit set to ensure ...

Domestic air passenger traffic grew 5.1 per cent year-on-year to an estimated 138.9 million in May and was significantly higher by around 14 per cent than pre-Covid levels, credit ratings agency Icra said on Thursday. Icra also said the outlook on the Indian aviation industry is stable amid the continued recovery in domestic and international air passenger traffic with a relatively stable cost environment and expectations of the trend continuing in FY2025. The airlines' capacity deployment in the previous month increased 6 per cent year-on-year and about 2 per cent higher than April 2024, it added. According to the agency, the domestic air passenger traffic for FY24 was around 154 million, with a year-on-year growth of around 13 per cent. It thus surpassed the pre-COVID levels of around 142 million in FY2020, the ratings agency said, adding that the international passenger traffic for Indian carriers stood at around 29.68 million last fiscal, registering a year-on-year growth of ..

Care Ratings on Friday reported a 35 per cent jump in its standalone net profit at Rs 34.8 crore in the fourth quarter ended March 31, 2024. The domestic rating agency had a profit after tax of Rs 25.9 crore in the January-March quarter of the 2022-23 fiscal. Total income rose 13 per cent to Rs 88.5 crore during the March quarter, Care Ratings said in a late night regulatory filing on Thursday. For the 2023-24 fiscal, the standalone net profit rose 15 per cent Y-o-Y to Rs 119.4 crore. Total income also grew 15 per cent to Rs 330 crore in the 2023-24 fiscal. The board of Care Ratings has declared a final dividend of Rs 11/share, which will take the total declared for the year to Rs 18/share. Shares of Care Ratings were trading at Rs 1,104.20 on Friday in early trade on BSE, up 0.29 per cent over the previous close.

'Non-complying ARC shall be subject to supervisory action,' says regulator

Passenger vehicle (PV) volumes are expected to log 5-7 per cent growth, touching a new peak for the third straight time in the next fiscal driven by the SUV segment, credit rating agency Crisil said on Monday. This anticipated growth is expected to come on the back of an estimated high base of 6-8 per this financial year even as demand for cars and exports remain muted, it said. A significant change in consumer preference has cranked up demand for SUVs leading to its market share doubling to around 60 per cent of total domestic volume this fiscal from around 28 per cent before the pandemic in fiscal 2019, the ratings agency said. This preference is expected to grow further, backed by a healthy pipeline of new model launches across price points, including electric variants, and normalised availability of semiconductors after a prolonged period of short supply, it said. "While the overall PV volume is seen rising 5-7 per cent next fiscal, we expect demand for SUVs to accelerate at .

Fitch Ratings said that though the interim budget presented was broadly in line with the expectations, it won't change the sovereign credit profile from 'BBB-' with a stable outlook

The pace of recovery in the industry earnings will be gradual owing to the high fixed cost nature of the business

The report also notes that as many as 628 projects with an anticipated completion cost of Rs 7.7 trillion are scheduled to be completed in H2 FY24

The ten emerging economies include Brazil, China, India, Indonesia, Korea, Mexico, Poland, Russia, South Africa, and Turkey

Job creation in industry continues as firms continue getting new business, says S&P Global

Rating upgrades outnumber downgrades in Apr-Sep 23; global slowdown begins to bite export oriented units

Credit rating agencies will have to submit their disclosures to the debenture trustees in a specified format for easier accessibility and analysis of the data submitted by them, according to Sebi. Under Sebi norms, credit rating agencies (CRAs) have to share certain information with Debenture Trustees (DTs). "Due to the large quantum of information submitted daily by CRAs to DTs, as well as short timelines mandated for disclosure of this information by DTs, it is essential that the data shared by CRAs be structured and submitted in a specified format for easier accessibility and analysis of the submitted data," the regulator said in a circular on Monday. In this regard, the Securities and Exchange Board of India (Sebi) has come out with an Excel template. "CRAs shall use the same template for their daily submissions of rating revisions to DTs," as per the circular, which will be effective from October 1. Further, CRAs should report on their compliance with the circular, as ratifie

Agency revises outlook for lender's asset quality score from 'stable' to 'positive'

India's long-term local and foreign-currency issuer ratings and the local-currency senior unsecured rating remains at Baa3, while the other short-term local-currency rating stands at P-3, it said

ICRA's sample set includes companies such as Dr Reddy's Laboratories, Sun Pharmaceutical Industries, Cipla and Abbott

CreditSights had previously expected a "minimal credit impact" on Vedanta Resources based on the old arrangement, as Volcan, Vedanta's holding entity was undertaking the semiconductor investments

S&P Global Ratings on Tuesday said a strong recovery is underway in the Indian financial sector and upgraded four financial institutions, including Union Bank of India and Bajaj Finance. The move reflects S&P's view that domestic financial institutions in India will continue to improve their asset quality, benefiting from good economic prospects and structural improvements in the operating conditions. "S&P Global Ratings today upgraded Bajaj Finance, Hero FinCorp, Shriram Finance, and Union Bank of India... A strong recovery is underway in the Indian financial sector," S&P said. S&P expects India's financial institutions, especially the public sector banks, to sustain their improvement in capital positions. Bank earnings will also likely be comparable to other emerging market peers, although margins could decline as the banks reprice deposits. "We expect earnings for our rated non-bank finance companies to remain healthy despite pressure from the rising cost of ...