Search Result for : Moodys

The Dollar Business Bureau India according to Moody’s Investors Service is implementing extensive reforms, which if successful would gradually ease the government’s high debt burden and turn its credit profile positive. The reforms and the financial changes that the government has introduced, would according to the Moody’s ease its high financial burdens.  In its just-released report, titled, “Government of India: Effective Implementation of Key Fiscal and Banking Sector Reforms Would Address Core Credit Challenges.” The report focusses mainly on 3 key reforms: The Goods and Services Tax (GST), the NPA resolution measures and the Fiscal Responsibility and Budget Management Act (FRBM) Committee recommendations.  On GST, Moody's opines that the “short-term impact of GST reforms may not be visible, but its long-term benefits will include ...

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 ...

PTI Upset over not getting a rating upgrade, India has lashed out at global rating agencies saying they are far detached from ground realities and must introspect as the reforms initiated certainly warranted an upgrade. Economic Affairs Secretary Shaktikanta Das said India was being denied an upgrade even as growth and fundamentals improve. In past too, India has questioned the methodology used by global rating agencies saying the nation compares favourably with other emerging countries on metrics such as default risk. In particular, it points to S&P Global Ratings keeping China at AA- despite rising debt and slowing growth while India has been kept at one step above junk. Moody's and Fitch too give similar rating citing ...

The Dollar Business Bureau Moody's Investors Service on Wednesday said the domestic steel prices are expected to experience limited global pressure over the next 12-18 months due to the government’s adequate protectionist measures such as safeguards and anti-dumping duties. "Nevertheless, with domestic steel prices lower than international prices and adequate protections in place in the form of safeguards and anti-dumping duties, Moody's anticipates limited pressure on steel prices over the next 12-18 months," Moody’s said in a statement. Moody's expects India's steel consumption be in the proximity of India’s projected GDP growth of 7.5% and 7.6% in 2017 and 2018, respectively. Meanwhile, the global rating agency assigned Ba3 rating to JSW Steel's suggested senior unsecured notes. It said the proposed issue will primarily be ...

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 ...

The Dollar Business Bureau The government is expected to achieve its target to reduce fiscal deficit to 3.5% of GDP (Gross Domestic Product) in the current financial year but higher spending on infrastructure will limit the room to cut it further to 3% in 2017-18, credit rating agency Moody's Investors Service said on Monday. The rating agency expects the Indian government to renew its commitment to enhance capital spending and address the impact of demonetisation in the Union Budget to be presented on February 1, 2017.  “On the fiscal front, the government will likely remain committed to achieving its fiscal deficit target of 3.5% of GDP for the fiscal year ending March 2017. However, room to reduce the deficit further to the target of 3% ...

The Dollar Business Bureau Credit ratings agency Moody's said the recent decision of demonetisation is beneficial for both the Indian government and banks, but execution challenges of this "unprecedented move" will disrupt the country’s economic activity, resulting in a slow GDP growth for a few quarters. The new development will have credit implications for almost every sector, since the decline in economic activity will contract corporate sales cash flows.  "Although the measures in the near term will pressure GDP growth and thereby government revenues, in the longer term they should boost tax revenues and translate into higher government capital expenditure and/or faster fiscal consolidation," Marie Diron, associate managing director in Moody's Sovereign Group said in a statement. Highlighting some of the sectors with significant ...

Source: The Dollar Business Bureau    The rising yen dents Japan's export performance, which is likely to fall again in March, said Moody’s in its weekly outlook.  “Japanese exports are likely to fall again in March, illustrating the ill effects of the rising yen. The yen's prolonged appreciation will cause Japan to lose its export competitiveness, and overall profits to corporate Japan are set to fall,” said the credit rating agency, Moody’s. In February 2016, Japanese exports fell consecutively for four months, underlining the continuous weakness in the economy that declined in the last months of 2015. The exports fell 4% to 5703.4 billion yen in the month of February from 5940.8 billion yen than the previous year, greater than the market expectations of a ...