CRISIL
Financial condition expected to be tighter: CRISIL Ltd
In a report, the credit rating agency said the financial conditions are expected to be tight due to the US Fed's policy rates at a decadal high in 2023 despite the looming recession. S&P Global expects the Fed policy rate to peak at 5-5.25 per cent in April-June 2023, with rate cuts only towards the end of the year.
Securitisation growth 42% in nine months this fiscal
According to CRISIL Ratings, the market activity in the quarter ended December 2022 continued the momentum witnessed in April to September period. Activity was broad-based, with wider participation, as the number of originators crossed 120 compared with about 100 in the preceding fiscal.
Indian corporate credit quality remains strong: CRISIL Ratings
According to CRISIL Ratings the corporate credit ratio (upgrades vs downgrades) continues to be high -- at 5.52 times in the first half of this fiscal (H1-FY23) -- underscoring ongoing broad-based improvement in India Inc's credit quality. The credit ratio was 5.04 times in the second half of the last fiscal (H2-FY22).
Securitisation may be key funding source for finance companies: CRISIL Ratings
The rating agency also said that securitisation can be an attractive investment avenue for banks looking to grow their retail assets. As the macro-situation and interest rates stabilise, deals may pick up further, propelling the securitisation market volume to reach near pre-pandemic highs. Securitisation transactions touched highs of Rs.1.9 lakh crore in fiscals 2019 and 2020 before the pandemic put brakes on its momentum.
Frontloading infra spend could bring faster growth: Crisil
The majority of Budget 2022-23 massive Capex outlay -- Rs 7.50 lakh crore -- will be spent on infrastructure development. Besides, the budget steered clear from a definitive consumption push to support economic recovery. Instead, it batted for investment spend, with an eye on the medium term. "On the one hand, the lift in the consumption cycle is now tied to a broad-based pick-up in economic activity, which the government is trying to engineer through a focus on investments," it said.
Omicron could push air traffic recovery into fiscal 2024: Crisil
The agency had earlier expected the full recovery to happen in fiscal 2023. It said that a material impact on the credit quality of airport operators, however, is unlikely as the dip in revenue is expected to be limited by a likely strong rebound, and the operators have adequate debt servicing cushions, liquidity buffers and financial flexibility to absorb the blip in traffic.
India Inc's EBITDA margin to get impacted in Q3FY22: Crisil
As per Crisil Research's analysis of 300 companies, excluding those in the financial services, and oil and gas sectors indicated a 100-120 basis points (bps) dip on-year and 70-100 bps sequentially during the period under review. The trend marked the first on-year decline in 12 quarters. The analysis showed that as many as 27 of 40 sectors tracked by Crisil Research are likely to see their Ebitda margins shrinking.
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