Moody's keeps stable outlook for global airline industry
The Dollar Business Bureau Moody’s on Tuesday kept its stable outlook on the world’s airline industry, as the credit ratings agency expects the decline but still-robust operating margins likely to continue. However, it warned that increasing fuel prices poses headwinds. The rating agency projects the average operating margins of rated carriers to reach 9% in 2017 and around 8% next year, from an estimated 10.8% in 2016. “This falling trend shows declines in airlines’ operating profit of around 11% in 2017 and around 12% in 2018, broadening from an estimated 1.2% contraction last year,” the international rating agency said in a note released from its headquarters in New York. Though the outlook is likely to remain stable, fuel prices and capacity utilisation and addition will ...
Writedown fears take off $5 bn of Toshiba's value
The Dollar Business Bureau An impending writedown at Japanese multinational Toshiba Corp has written off around $5 billion of its value in just two days that led to a downgrade of its credit rating on Wednesday, as the conglomerate was coping to bridge a potential multi-billion dollar gap.The Japanese major in a media statement on Tuesday said that “cost overruns a nuclear business in US it purchased from engineering company Chicago Bridge & Iron (CB&I) last year, Stone & Webster, which meant the company could face charges of several billion dollars,” leading to a bruising overpayment.However the company did not state whether that would write off the value of its assets but hinted that it would impact its net worth. It said ...
BRICS may set up credit rating agency soon
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. ...
$500 million bonds of ICICI to hit the international debt markets
The Dollar Business Bureau ICICI bank is planning to raise its foreign exchange capability of funding by hitting the international market with a $500 million bonds. They are selling 10-year dollar bonds with a view that they would be able to service demands for loans from companies in the overseas market. The company’s $7.5 billion global medium term note program is a part of the bonds sale. Also a point to be noted is that it is the year’s first private sector domestic financial institution. The sale of the bonds is being done through Dubai International Finance centre branch, where it is opened to the investors in Asia on Monday morning and it is likely to be closed after receiving tenders ...
