Page 2 - Credit Rating

JSW USA to raise $145 mn loan for capex Moody's affirms stable ratings

Company's reliance on long-term external financing will be critical, says agency

Jio Financial Services eyes Rs 5K-10K crore via maiden bond issue

Market participants said the rate on the bonds might be 15-25 basis points higher than that on Reliance Industries bonds issued earlier this month

Moody's warns US top-notch credit rating under threat, lowers outlook

Continued "political polarization in Congress raises the risk that lawmakers will not be able to reach consensus on a fiscal plan to slow the decline in debt affordability," Moody's said

Corporate credit ratings stable in H1FY24 despite global headwinds: CARE

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

Sebi revokes Brickwork's wind up order, bars taking clients for 6 months

Capital markets regulator Sebi has revoked its wind up order against Brickwork Ratings India and barred the credit rating agency to onboard new clients for a period of six months. In June, the Securities Appellate Tribunal (SAT) set aside a Sebi ruling cancelling the licence of the credit rating agency and asked the regulator to pass a fresh order. Brickwork Ratings India Pvt Ltd is a Sebi and RBI-accredited registered credit rating agency. In an order on Wednesday, the markets regulator directed Brickwork Ratings India to strengthen its board and appoint an "independent professional chief executive officer and an independent director as chairperson". It has also directed Brickwork to increase the number of directors to nine from the current five and ensure that the new members of the newly constituted board are unconnected to the present management/founders of the company. According to Sebi, the credit rating agency will ensure that members of the founding management are not part

Fitch affirms SBI's long term rating at 'BBB' on asset quality, loans

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

Moody's cuts Chinese property giant Longfor's ratings to cusp of junk

China's property market has suffered a wave of defaults and debt restructurings since mid-2021 which have also left swathes of homes unfinished

Indian banks' operating environment strengthens as Covid risks ebb: Fitch

With banks shoring up their capital buffers and cleaning up their balance sheets following the pandemic, their gross non-performing asset ratio has fallen to a 10-year low of 3.9% as of March 2023

Telecom sector to see 7-9% revenue growth, Rs 70,000 cr capex in FY24: ICRA

The telecom services industry is expected to post moderate revenue growth of 7-9 per cent in FY 24, due to muted average revenue per user (ARPU) expansion in the absence of tariff hikes in the near-term, ICRA said. The industry has been "upfronting" 5G capex (capital expenditure) and ICRA foresees sectoral capex at around Rs 70,000 crore for FY2024, within an overall spend of around Rs 3 lakh crore over the next 4-5 years. ICRA believes that the ongoing 5G roll-out entails densification of the network and sizable deployment of fibre, which is likely to increase the capex intensity in the near to medium term. This would keep debt levels elevated at around Rs 6.1-6.2 lakh crore as on March 2024 (as against Rs 6.3 lakh crore as on March 31, 2023). "ICRA expects the telecom services industry to report moderate revenue growth of around 7-9 per cent in FY2024 over FY2023, owing to muted average revenue per user (ARPU) expansion in the absence of tariff hikes in the near-term," ICRA said

Climate change could downgrade India's credit rating, study finds

India's sovereign credit rating could be downgraded due to the impact of climate change and the rise in temperature volatility by as early as the 2030s, according to a study. The team, led by researchers at the University of East Anglia (UEA) and the University of Cambridge, UK, found that deferring green investments will increase costs of borrowing for nations, which will translate into higher costs of corporate debt. The study, published on Monday in the journal Management Science, is the first to anchor climate science within real world financial indicators. It suggests that 59 nations will experience a drop in sovereign credit rating in the next decade without emissions reduction. Sovereign ratings assess the creditworthiness of countries and are a key gauge for investors. Covering more than USD 66 trillion in sovereign debt, the ratings and agencies behind them act as gatekeepers to global capital. The researchers used artificial intelligence (AI) to simulate the economic ..

Fitch downgrades US credit rating to AA+, Treasury calls it 'arbitrary'

Fitch downgraded the United States to AA+ from AAA, citing fiscal deterioration over the next three years and repeated down-the-wire debt ceiling negotiations

Rupee expected to decline on poor risk appetite, weakness in Asian peers

Non-deliverable forwards indicate rupee will open at around 82.32-82.34 to U.S. dollar compared with 82.2550 in the previous session

Prominent economists criticise Fitch Rating's decision to downgrade US

Former Treasury Secretary Summers said while there are reasons for concern about the long-run trajectory of the US deficit, the country's ability to service its debts wasn't in doubt

US ratings downgrade puts focus on remaining nations with top credit grade

Countries with highest credit rating at S&P Global Ratings, Fitch and Moody's Investors Service include Germany, Denmark, Netherlands, Sweden, Norway, Switzerland, Luxembourg, Singapore and Australia

RBI to look into companies that do not cooperate with credit rating firms

Out of 40,000 companies that have been rated, nearly half of them have not cooperated with credit-rating firms

FinMin to meet Moody's on June 16, pitch for sovereign rating upgrade

The Finance Ministry officials will showcase India's strong economic fundamentals and pitch for a sovereign rating upgrade in a meeting with US-based Moody's on June 16. Moody's Investors Service has a 'Baa3' sovereign credit rating on India, with a stable outlook. 'Baa3' is the lowest investment grade rating. Economic Affairs Secretary Ajay Seth, Chief Economic Advisor V Anantha Nageswaran and other senior officials from key ministries would talk about the ongoing economic reforms, government thrust on infrastructure development and forex reserves nearing USD 600 billion, sources said. The government had largely met its fiscal objectives over the past two years. The fiscal deficit, which is the difference between government expenditure and revenue, narrowed to 6.4 per cent of GDP in 2022-23 fiscal, from 6.7 per cent of GDP in 2021-22 fiscal. In the current fiscal, the deficit is budgeted at 5.9 per cent of GDP. As per the fiscal consolidation roadmap, the government intends to br

US AAA credit rating may be downgraded by Fitch on debt-limit impasse

Economists project a US default could trigger a recession, with widespread job losses and a surge in borrowing costs

S&P affirms BBB- sovereign credit ratings on India, outlook stable

S&P Global added that solid consumer and investment dynamics will propel India's real gross domestic product (GDP) growth to 6 per cent in fiscal 2024

S&P affirms HDFC Bank's long-term issuer credit rating at 'BBB-'

The bank's strong management and governance structure should help in the planned merger of mortgage lender Housing Development Finance Corporation Ltd (HDFC) with itself

S&P upgrades Tata Motors' long-term issuer, issue credit ratings to 'BB'

A "BB" rating signifies that the entity is less vulnerable in the near-term but faces major ongoing uncertainties due to adverse business, financial and economic conditions