Fitch Ratings

The rating agency on Tuesday observed that India is likely to emerge as among the fastest growing emerging markets in the current fiscal. At the same time though, the agency has slashed the growth projections for the next two fiscals, observing that while the Indian economy is insulated from global shocks, it is not immune to global developments.

Strong loan growth should benefit net revenue, particularly as it will be coupled with wider net interest margins. However, it will put pressure on Core Equity Tier 1 ratios (CET1) should credit growth exceed Fitch's expectations, limiting buffers to absorb potential future losses.

According to the credit rating agency, this status should support NBFI's performance amid a broadening economic recovery, although certain segments could still be vulnerable to higher-than-expected inflation. Fitch revised the Outlook on India's 'BBB-' sovereign rating to Stable from Negative in June 2022.

The rating agency expects India's cement demand to rise by mid-to-high single digits over the medium term after an estimated mid-teen rebound in the financial year ended March 2022 (FY22). Nonetheless, industrywide utilisation will drop towards 65 per cent from the close to 70 per cent we estimated in FY22 as faster new capacity additions will outpace demand growth.

"The Outlook revision reflects our view that downside risks to medium-term growth have diminished due to India's rapid economic recovery and easing financial sector weaknesses, despite near-term headwinds from the global commodity price shock," it said in a statement on Friday. The ratings agency expects a robust growth relative to peers to support credit metrics in line with the current rating.

Russias credit ratings have been downgraded deep into the 'junk' territory by Moodys Investors Service and Fitch Ratings, with the duo highlighting the economic toll inflicted by wide-ranging sanctions and rising doubts about whether Moscow will honour its debts, The Wall Street Journal reported.

In his preliminary comments on India's budget, Jeremy Zook, Director and Primary Sovereign Analyst for India, Fitch Ratings said: "The economic and revenue assumptions underpinning the budget are largely credible and the target for disinvestment is more achievable than in last year's budget. "The government also appears to be following through on its efforts to improve budget transparency by keeping previously off-budget spending on budget."

The affirmation of the negative outlook on India's Long-Term IDRs reflects concerns over high public debt levels and increasing risk to growth from the recent surge in coronavirus cases.

The affirmation of the negative outlook on India's Long-Term IDRs reflects concerns over high public debt levels and increasing risk to growth from the recent surge in coronavirus cases. "India's rating balances a still strong medium-term growth outlook and external resilience from solid foreign-reserve buffers, against high public debt, a weak financial sector and some lagging structural factors," Fitch Ratings said.

Accordingly, BPCL has made headway on a key pre-condition to its divestment and other key milestones over the last six weeks, including the finalisation of terms to purchase Oman Oil Company's 36.6 per cent stake in its Bina refinery in February 2021. Besides, It also sold 5.8 per cent of its 7.3 per cent treasury shares and approved the sale of its 61.7 per cent stake in Numaligarh Refinery in March.