Fitch Ratings

Fitch revises outlook on Azure Power Energy to negative; affirms 'B' rating

AGPL is the holding company of Azure RG3

Fitch revises outlook on 4 Adani firms to 'negative' amid US indictment

The US credit rating agency places three Adani entities under Rating Watch Negative status

Fitch puts some Adani bonds on negative watch after US SEC bribery charges

US prosecutors have charged billionaire Gautam Adani, the group's founder, his nephew Sagar Adani and six others for their alleged roles in a $265-million scheme

India remains committed to reducing budget deficit over medium term: Fitch

India remains committed to reducing the budget deficit over the medium term, despite its focus on higher public capex and demands of the coalition government, Fitch Ratings said on Tuesday. In a report, it said India has achieved or outperformed its budget deficit targets in the last few years, thereby improving its fiscal credibility. Fitch said India using RBI dividend to lower its fiscal deficit target for the fiscal year ending March 2025, reinforces its view that the country prefers fiscal consolidation over additional spending. Still, India's deficit, and interest-to-revenue and debt ratios remain high compared with the 'BBB' category sovereign peers, Fitch said. "...we believe its (India) government remains committed to reducing the budget deficit over the medium term, even amid the demands that governing in the coalition will impose on the newly elected administration - and despite the government's sustained focus on supporting economic growth through higher public capex,"

Fitch changes global reinsurers' outlook to 'neutral' from improving

Reinsurers, which insure the insurers, have raised their rates in recent years in response to losses from the Covid-19 pandemic, wars and natural catastrophes

SEC's WhatsApp probe expands as Moody's, S&P, Fitch hit with $48 mn fine

The Securities and Exchange Commission said Tuesday that Moody's and S&P will each pay $20 million to settle the cases, while Fitch will pay $8 million

Moody's raises India's growth projection; Fitch affirms 'BBB-' rating

The government has set a lower fiscal deficit target of 4.9 per cent in the union budget presented on July 23 compared with 5.1 per cent set in the interim budget in February

Moody's raises India's growth forecasts, Fitch affirms 'BBB-' rating

Global rating agency Fitch on Thursday affirmed India's sovereign rating at 'BBB-' with a stable outlook. India's rating has remained unchanged at 'BBB-', the lowest investment grade, since August 2006. "Fitch Ratings has affirmed India's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BBB-' with a Stable Outlook," the global rating agency said in a statement. India's ratings are underpinned by its strong medium-term growth outlook, which will continue to drive improvement in structural aspects of its credit profile, including India's share of GDP in the global economy, as well as its solid external finance position, it said in a statement. Strengthening fiscal credibility from recent achievement of deficit targets, enhanced transparency and buoyant revenues, have increased the likelihood that government debt can follow a modest downward trend in the medium term, it said. Nevertheless, it said, fiscal metrics remain a credit weakness, with deficits, debt and debt servic

SC verdict to hit mining firms; Tata Steel, JSW Steel to see lower profits

Tata Steel, JSW Steel, and other companies may see higher costs and reduced profitability from new state-imposed mining taxes, leading to inflation, following a Supreme Court decision

Subdued discretionary spending to hit India's IT services growth: Report

The latest Fitch Ratings report says that the long-term growth of India's IT services sector will be supported by client spending on digital transformation, cloud migration, and AI

Fitch cuts Israel's rating to A+ as Gaza war seen lasting into 2025

The action reflects the impact of the continuation of the war in Gaza, heightened geopolitical risks and military operations on multiple fronts, analysts wrote

FY25 Budget confirms govt's commitment to reduce fiscal deficit: Fitch

Fitch Ratings on Friday said India's post-election budget confirms that the new administration remains committed to reducing the fiscal deficit for FY25 and FY26, despite demands of the coalition government. In the FY25 budget, the government has lowered the Centre's fiscal deficit target for the year ending March 2025 to 4.9 per cent of GDP, from 5.1 per cent in February's interim budget. The government's fiscal deficit target for FY25 is significantly below the 5.4 per cent that the ratings agency anticipated when it affirmed India's 'BBB-' rating, with a stable outlook, in January 2024. "India's post-election budget confirms that the new administration remains committed to reducing the fiscal deficit this and next year, despite the demands of the coalition government," Fitch Ratings said in a statement. The sustained focus on supporting economic growth through high public capex also points to continuity in key areas, it added. "We believe that it should be achievable as the ...

Fitch revises Tata Steel outlook to negative amid UK biz uncertainty

Fitch Ratings on Friday revised its outlook on domestic steel major Tata Steel to negative on account of uncertainty surrounding the turnaround of the company's operations in the UK. However, the expected robust growth in Tata Steel's India operations and likely earnings before interest, taxes, depreciation, and amortization (EBITDA) profits at Dutch operations in FY25, may offset any losses at UK operations, Fitch Ratings said in a report. "Fitch Ratings has revised the Outlook on India-based Tata Steel Limited's (TSL) Issuer Default Rating (IDR) to Negative, from Stable, and affirmed the IDR at 'BBB-'. "We have also affirmed the rating on the USD 1 billion notes due July 2024 issued by TSL's subsidiary ABJA Investment Co. Pte. Ltd. and guaranteed by TSL, at 'BBB-'," the statement said, adding that the negative outlook reflects uncertainty surrounding turnaround of the UK operations. The rating agency further said that the change in the UK government and labour union's actions to

Fitch affirms 'BBB+' rating on Larsen & Toubro with stable outlook

Fitch Ratings said it has affirmed 'BBB+' rating with stable outlook on Larsen & Toubro and stressed that the ratings indicate strong financial structure and sound financial flexibility of the company. "Fitch Rating has assigned India's Larsen & Toubro Limited (L&T) first-time Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) of 'BBB+'. The Outlook is Stable," the rating agency said in a statement on Tuesday. The ratings reflect the company's strong market position as a large global engineering and construction company with above-average profitability and solid revenue visibility. "We believe L&T's robust record of steady margins, which is backed by adequate risk management and diversification into stable and high-margin IT and technical services businesses, buffers its ratings against the inherent risks in the E&C (engineering and construction) sector," it said. The credit rating agency further said that the stable outlook reflects its view that .

Fitch Ratings raises India's growth forecast by 20 bps to 7.2% for FY25

The Indian economy grew at an impressive rate of 8.2 per cent in FY24, driven by a stronger-than-expected expansion of 7.8 per cent in the fourth quarter

Fitch raises India's growth estimates for FY25 to 7.2% as investments rise

Fitch Ratings on Tuesday raised India's growth forecast for current fiscal to 7.2 per cent, from 7 per cent projected in March, citing a recovery in consumer spending and increased investment. For the fiscal years 2025-26 and 2026-27, Fitch projected growth rates of 6.5 per cent and 6.2 per cent, respectively. "We expect the Indian economy to expand by a strong 7.2 per cent in FY24/25 (an upward revision of 0.2 pp from the March GEO)," Fitch said in its global economic outlook report. Fitch's estimates are in line with that of RBI which earlier this month projected Indian economy to expand 7.2 per cent in the current fiscal on the back of improving rural demand and moderating inflation. Investment will continue to rise but more slowly than in recent quarters, while consumer spending will recover with elevated consumer confidence, it said. Fitch said purchasing managers survey data point to continued growth at the start of the current financial year. It said signs of the coming mo

Fitch ups 2024 world growth forecast to 2.6%; cautions on inflation

However, for 2025, Fitch expects world growth to edge down to 2.4 per cent as US growth slows to a below-trend rate of 1.5 per cent and growth in the Eurozone picks up to 1.5 per cent

Coalition, weak mandate may hinder passing ambitious reforms: Fitch

As the NDA is all set to form the government, Fitch Ratings on Thursday said coalition politics and a weakened mandate could make it challenging to pass legislations on ambitious reforms. "We believe major reforms to land and labour laws will remain on the new government's agenda as it seeks to enhance India's manufacturing sector, but these have long been contentious and the NDA's weaker mandate will complicate their passage further. This could reduce the potential upside to India's medium-term growth prospects," Fitch said in a statement. The BJP fell short of a single-party majority in the 543-seat lower house of parliament for the first time since its latest period in government that began in 2014. But Fitch expects it to secure enough support from allied parties in the National Democratic Alliance (NDA) to form a government with Narendra Modi remaining Prime Minister. The outcome should support broad policy continuity, with the government continuing to prioritise infrastructur

Passing major reforms may prove difficult for next govt: Rating agencies

Rating agencies, such as Fitch and Moody's, said broad policy continuity may persist

Weak majority for BJP poses challenges to reform agenda, says Fitch

The BJP losing its outright majority and relying on allies to form a government could pose challenges for the more ambitious elements of reform agenda like land and labour, Fitch Ratings said in a note on Wednesday. Prime Minister Narendra Modi-led BJP lost its majority for the first time since 2014, winning 240 seats in the 543-seat Lok Sabha. It plans to form a government with smaller parties in his National Democratic Alliance, which won another 52 seats, giving the alliance a 292-seat majority. "It appears the BJP-led NDA is likely to form the next government, returning Prime Minister Modi for a third term, but with a weakened majority that could pose challenges for the more ambitious elements of the government's reform agenda," Fitch said. As the BJP fell short of an outright majority and will need to rely more heavily on its coalition partners, "passing contentious reforms could prove more difficult, particularly around land and labour, which have recently been flagged as ...