Banks in India risk seeing their capital severely depleted if there is a rise in corporate defaults, warned global rating agency Moody's
Government's move to cut corporate tax rate will boost net income of Indian firms
The losses to asset-backed securities (ABS) will also rise as the economy slows, said Moody's
It also affirmed the local and foreign currency deposit ratings of Canara Bank, OBC, Syndicate Bank and Union Bank at Baa3/P-3
Moody's said the negative outlook reflected uncertainty over the refinancing of Macrotech's upcoming debt maturities
Acquisition will erode PFCs capital adequacy
US credit rating agency Moody's on Friday upgraded India's sovereign rating to Baa2
The rating agency has also changed its outlook on India rating from positive to stable, a move that will help India attract more foreign fund flows and corporates tap debt at lower rates abroad
Moody's expect RBI to hold policy 'repo' rate steady to have a neutral stance in this growth
Moody's said growing leverage in China prompted the downgrade, and warned about slowing growth