Page 6 - Fitch Ratings

Indian banks' switch to IFRS norms unlikely to drive rating changes: Fitch

The RBI introduced a discussion paper last week that suggested banks make provisions for bad loans using the expected credit loss (ECL) method

Fitch downgrades Azure Power Energy's rating on governance concerns

There is lack of clarity in impact of holding company's internal controls and compliance framework: Rating agency

Fitch sees risks to India's target of raising natural gas' energy share

Price volatility and infrastructure constraints will challenge India's target of increasing the share of natural gas in its primary energy to 15 per cent by 2030 from 6 per cent in 2017, Fitch Ratings said in a new report Tuesday. "Progress on the target has been minimal - 6 per cent share in 2021 - as natural gas growth has not managed to outpace total energy growth," it said. This is despite resilient demand from city gas distribution (CGD) networks and rising domestic production. Prime Minister Narendra Modi had in 2017 set a target of raising the share of natural gas in the primary energy consumption basket with a view to cutting down emissions. However, the demand for the fuel is rising at a slower rate, with current growth rates only around 53 per cent of levels required for the country to meet a 15 per cent gas use target. Gas demand by 2030 will only reach 326 million standard cubic meters per day at current 4-5 per cent growth rates, much lower than the 611 mmscmd of ...

Fitch affirms India's sovereign rating at BBB- with stable outlook

Fitch said India's robust medium-term growth outlook is a key supporting factor for the rating

Power demand to fall in H2, gencos' receivables to go up: Fitch Ratings

The LPS Rules regulate access to power in case of non-payment of dues by discoms to gencos

Fitch affirms India at 'BBB-', says medium-term growth outlook is key

Fitch said India's rating reflects strengths from a robust growth outlook compared to peers and still-resilient external finances

South Indian Bank's move on tier-2 bond won't disrupt sector: Fitch

Lender decision to not redeem the bonds does not indicate any weakness in capital position, says ratings agency

Strong bank loan growth in FY23 despite higher interest rates: Fitch

Fitch Ratings on Monday said India's bank credit will see strong growth in current financial year despite effects of higher interest rates. It said the strong loan growth should benefit net revenue, particularly as it will be coupled with wider net interest margins. "We see bank credit expanding by around 13 per cent in FY23, up from 11.5 per cent in FY22. The acceleration will be driven by the normalisation of economic activity after the COVID-19 pandemic, and high nominal GDP growth, which we expect to boost demand for retail and working-capital loans," Fitch said in a statement. Fitch forecasts India's real GDP growth at 7 per cent in 2022-23. It said Indian banks generally remain open to additional capital-raising to fund growth, despite the rise in rates. "Private banks are generally better than state banks at capital planning, although moves to raise fresh equity are likely to be opportunistic and incremental," Fitch added. The rating agency expects greater competition for .

Overall commercial-vehicle volume to touch 1 mn units by FY24: Fitch

Domestic commercial-vehicle (CV) sales volume will witness significant growth over the next few years and the overall CV volume is likely to reach close to 1-million units by FY24, a report said on Wednesday. The report by credit ratings agency Fitch Ratings also expects growing demand and the resultant rise in operating leverage to boost the profitability of the domestic CV-focused original equipment manufacturers after FY22, despite elevated production costs. A recovery in medium and heavy CVs from multi-year lows, along with sustained growth in light CV categories, will help overall CV volume to reach close to 1-million units by FY24 the level of the last cyclical peak recorded in FY19, it said. According to Fitch, domestic CV sales volume are expected to grow in the mid-to high-teens over the next few years. Factors like rapid recovery in India's economic activity after the pandemic shock and the government's planned increase in infrastructure spending will help sustain an ...

Fitch Ratings cuts UK's credit outlook to negative on fiscal risk

The UK's credit outlook was lowered to negative from stable by Fitch Ratings, which cited risk the government's new growth plan could increase the nation's fiscal deficit

Fitch affirms Bank of Baroda, subsidiary at 'BBB-' with stable outlook

Action factors in a high likelihood of sovereign support to the public sector lender; rating agency says profitability to rise further; high loan growth to resume

Fitch cuts India FY23 GDP growth forecast to 7%; world GDP growth at 2.4%

At a more macro level, Fitch now expects world GDP to grow by 2.4 per cent in 2022 - revised down by 0.5 percentage points (ppt) since the June assessment

Top headlines: Vehicle sales up 8% in Aug; Fitch affirms rating for 4 NBFCs

Two-wheeler sales were up 8.5 per cent and three-wheeler by 8.3 per cent in August. Passenger and commercial vehicle sales increased 6.5 per cent and 24 per cent

Pak rupee, stocks sink amid political uncertainty; Fitch downgrades rating

Pakistan is looking at financial meltdown as rupee fell against the US dollar while the stock market shed at least 1,500 points in two days after Fitch Ratings downgraded the country's credit rating

Repayment pressure to test banks' loan underwriting quality: Fitch

Mounting repayment pressure for some borrowers, particularly micro, small and medium-sized enterprises, amid India's interest rate hikes will test banks' loan underwriting quality, Fitch Ratings said

Banks' asset-quality risk to be moderate after RBI rate hike: Fitch Ratings

'Mounting repayment pressure for some borrowers amid India's interest rate hikes, particularly for micro, small and medium-sized enterprises, will test banks' loan underwriting quality'

Improved economic activity to support demand for steel, cement: Fitch

Fitch Ratings forecast strong medium-term growth to support the demand for India's steel, cement and chemicals sectors, with improved economic activity boosting power and petroleum product sales

Fitch Ratingsaffirms 'BBB-' rating to GAIL India, outlook stable

GAIL's gas-marketing segment is expected to benefit from high crude oil and spot LNG prices in FY23

Indian non-banking finance sector's profit to be stable: Fitch Ratings

Improving credit growth, decreasing asset-quality risks will be the character of Indian non-banking financial institutions (NBFI) during FY23, said Fitch Ratings on Monday

Fitch enhances ratings of 13 Indian firms to 'moderate downgrade risk'

These companies are either govt-related entities (GREs) with ratings linked to the sovereign rating or pvt entities whose ratings would be downgraded if India's Country Ceiling was lowered to 'BB+'