Search Result for : Credit Rating Scheme

The Dollar Business Bureau Credit rating agency S&P Global Ratings on Wednesday lowered the credit rating of Qatar by one level to AA- and put the country on a watch on concerns of further downgrading after four Gulf Arab nations severed ties with Doha.   “We believe this will exacerbate Qatar's external vulnerabilities and could put pressure on economic growth and fiscal metrics,” S&P Global said.  Saudi Arabia, Bahrain, Egypt and the UAE on Monday announced that they were severing diplomatic relations and closing air, land and sea links with Doha.   Saudi Arabia and its allies alleged that Qatar is providing support to extremist groups and serving the interests of Riyadh’s regional rival Iran, claims which Doha has strongly declined.   “At this ...

The Dollar Business Bureau  To reinforce its control on its currency, China is “considering” a modification in its procedures that would help in bringing more stability to the country’s financial system in near-term. “We were “considering” a change in procedures that would reinforce our control of the renminbi, said Chinese officials. This move by Beijing would probably bring more stability in short-term to the country’s financial system, which has already been the subject of new focus after the credit rating agency Moody’s Investors Service on Wednesday downgraded China’s credit rating on bonds, mentioning its rising debt.  Moody's downgraded the country’s sovereign ratings to A1, stating it believes that the financial strength of the second largest economy of the world would erode in the coming years due ...

The Dollar Business BureauUnderlining India’s strong macroeconomic parameters, the government on Tuesday held a meeting with the global credit rating agency Fitch and pitched for an upgrade in the country’s credit rating. Finance ministry officials explained to the agency about the government’s intended fiscal disciplines while indicating that the Union Budget 2017 will spur economic growth in the country. Recently, several credit rating agencies have denied providing an upgrade to the country’s credit ratings, citing reasons such as stressed balance sheets of corporates as well as banks. The government officials also asked Fitch to explain how it rated the credit ratings of any country. The Fitch officials, in turn, explained that they considered the government’s structural reforms, which ...

The Dollar Business Bureau Economic growth rate of India in the next two years is likely to face challenges by dreary global demand and major leverage in certain corporate sectors, said Moody’s, a credit rating agency. Presently, Moody’s with ‘Baa3’ rating has a positive outlook for the country. However, the high leverage of corporates and credit demand will impact the growth in negative ways. Meanwhile, the impaired assets in banking system may negatively impact on credit supply, said Moody’s senior vice-president and manager, Marie Dion. In FY16, despite domestic hurdles, India’s GDP climbed to 7.6% from 7.2% logged in FY15. On the back of good monsoons with a push on consumption due to the recent 7th Pay Commission, the economy is expected to grow by 8% ...

The Dollar Business Bureau The UK suffered another setback to its economic standing as its sovereign credit score has been downgraded by two top ratings agencies, who have said that last week's referendum to leave the EU would hurt the country’s economy. Standard & Poor's (S&P) stripped the UK of its top-notch rating, downgrading it by two notches from AAA to AA and also warned that the ratings could be slashed further. The rating agency also said the result of the referendum vote could lead to a decline in the economic performance of UK, including the country’s huge financial services sector. Another international credit rating agency, Fitch Ratings, also dropped its credit ranking for the UK by one grade, and said further cuts may ...

The Dollar Business Bureau The Indian government has approved the new norms of Performance of MSMEs in the Credit Rating Scheme. These guidelines are sanctioned to enhance the credibility for the borrowers as well as banks. As per the new guidelines, the Micro, Small and Medium Enterprises (MSMEs) shall pay a fee to credit rating agencies based on their turnover.    The credit rating agency fee in turn has been further classified under three slabs based on the turnover. The MSME Ministry will reimburse 75% of the rating agency fee to a maximum of Rs.15,000 for a turnover up to Rs.50 lakh, to a maximum of Rs.30,000 for a turnover between Rs.50 lakh and Rs.2 crore, and to a maximum of Rs.40,000 for MSMEs ...

The Dollar Business Bureau In a bid to challenge the dominance of west in the area of finance, the five-member association of emerging nations-BRICS is mulling to set up a credit rating agency. The proposed agency for emerging markets is likely to be formed at the next BRICS summit, which will be hosted by India in October 2016.  Since the past few years, the leaders of BRICS countries (Brazil, Russia, India, China and South Africa) were in talks to set up credit rating agency. In an effort to make use of the disposal worth $100 billion in NDB, which was formed by BRICS, a proposal to set up NDB institute in India is underway. The proposal will be considered at the upcoming BRICS summit. ...

PTI Foreign banks have stopped opening branches in India as they need to set aside a lot more capital due to the country's "higher risk" credit rating and they feel it is "not worth" doing so, Reserve Bank Governor Raghuram Rajan has said. In a lecture titled 'Why Banks?' as part of the Marshall Lecture 2015-16 series at Cambridge University on Tuesday, Rajan said greater demand on banks to hold capital in the post financial crisis scenario has come at a cost. He said, "It made sense post financial crisis to ask banks to hold more capital. But one of the concerns bankers have been expressing, even if bankers may have low credibility because they have cried wolf too often, that eventually it ...