GST to be positive for auto, retail; negative for SMEs: Fitch Rating

New indirect tax regime GST is likely to be beneficial for auto, cement and organised retail sectors, but will have a negative impact on oil and gas, and SME sectors, Fitch Ratings said according to the PTI report. In contrast, the impact would be broadly neutral for property, electricity, telecom, pharmaceutical and fertiliser sectors, it said. "The national service tax (GST), is unlikely

Shriram Transport's rating not immediately affected: Fitch Rating

Shriram Transport Finance Co's rating is not immediately affected by the announcement of IDFC's proposed merger with Shriram Group, Fitch Ratings said as per the PTI report. Shriram Transport, the flagship company of Shriram Group that provides financing for used commercial vehicles, is unlikely to be affected based on the proposed group structure, it said. Fitch believes regulatory app

Fitch affirms China's A+ rating with stable outlook

BEIJING - Fitch Ratings on Friday maintained its A+ rating on China with a stable outlook, citing the strength of the country's external finances and macroeconomic record.

Short-term growth prospects remain favourable, and economic policies have been effective in responding to an array of domestic and external pressures in the past year, Fitch said.

In a

Abercrombie ends talks with potential buyers, retail shares dip

Shares of Abercrombie & Fitch Co plunged 21 percent on Monday and dragged down other stocks in the battered retail sector as the U.S. teen apparel maker terminated talks over a potential sale.

Investors saw Abercrombie's failure to sell itself as yet another blow to a retail sector already struggling to cope with changing consumer tastes and growing pressure from In

Asian economies more resilient after financial crisis: Fitch Rating

Asian economies are better equipped to weather external shocks and financial pressures owing to buffers built and reforms undertaken in the wake of the Asian Financial Crisis, which began twenty years ago this week, says Fitch Ratings. According to Fitch Ratings, the shift from fixed to more flexible exchange rates is one of the key differences from 1997. The four hardest-hit countries - Korea,

Farm loan waiver may dent state finances, risk slippage: Fitch Rating

Loan waiver schemes being doled out to farmers could have a significant impact on state government finances and pose risk of further fiscal slippages, Fitch Ratings said. Four states-- Uttar Pradesh, Maharashtra, Punjab and Karnataka, which account for around one-third of India's population-- have announced farm loan waivers and other state governments are likely to feel pressure to impleme

Fitch Ratings maintains negative outlook on banking sector

 Fitch Ratings maintained the negative outlook on the Indian banking sector based on an assessment on the sector's core capitalisation, a top official of the ratings agency said on Wednesday.

"We have maintained the negative outlook on the sector and the large part of that is from our concerns on capitalisation levels at public sector banks and how they have eroded becau

Fitch Ratings affirms rating of 8 banks at 'BBB-'; outlook stable

Fitch Ratings has affirmed ratings of eight lenders including State Bank of India and Bank of Baroda at 'BBB-', with a stable outlook, reported PTI. Bank of Baroda (New Zealand), Punjab National Bank, Canara Bank, Bank of India, ICICI Bank and Axis Bank's rating has been also affirmed at 'BBB-'. The rating agency, however, downgraded viability rating (VR) of Bank of India to

Global ports sector faces structurally slower growth, says Fitch Ratings

Traffic growth in the ports sector is likely to remain well below historical levels for the foreseeable future, due to fundamental structural changes in the industry and global trade, says Fitch Ratings.

The rating agency said that a move towards protectionism would represent a significant additional risk, with the potential to reverse sector growth. According to Fitch, global port tr

Global NAND shortage to impact SSD supply chain firms: Fitch Ratings

The ongoing NAND flash memory shortage and resulting rise in NAND prices will continue to hamper growth and margins for companies within the solid-state drive (SSD) supply chain, according to Fitch Ratings. The rating agency said that these scenarios are likely to negatively affect the credit profiles of firms, including flash controller providers, enterprise storage original equipment manufact

Cash crunch led to 'material impact on spending': Fitch

Demonetisation of old Rs 500 and 1,000 notes had a "material impact on spending" as reflected in significant slowing of GDP growth in January-March, Fitch Ratings said , warning that the ongoing steep decline in investment could spell risks to growth potential, reported PTI. In its latest Global Economic Outlook (GEO), Fitch said Indian GDP growth slowed "significantly" to 6

Air traffic growth tempers aviation sector risk, says Fitch

Global demand for air travel is poised to grow in the next year, though airline capacity growth could outstrip demand, says Fitch Ratings. According to Fitch Ratings, continued growth in travel demand remains a positive factor for aircraft original equipment manufacturers (OEM) and lessors and global airline industry profits are expected to remain above historical averages.

However, s

Telecom sector woes do not pose systemic threat to banks: Fitch

In the wake of recent liquidity crisis at Reliance Communications, global rating agency Fitch Ratings said though the country's banks do not have large exposure to the telecom sector, but defaults could affect lenders with weak financials. "Indian banks' exposure to troubled telecom companies is not large enough to pose a systemic threat, but defaults could add to problems at banks

Fitch cuts Reliance Communications junk rating even further

MUMBAI- Fitch Ratings downgraded Reliance Communications further into junk territory on Thursday, becoming the latest credit agency to cast doubt on the Indian mobile phone operator's ability to meet its heavy debts.

Fitch cut Reliance's long-term foreign- and local-currency ratings to "CCC" from "B-plus", and its $300 million 6.5 percent s

Retail & distribution space to converge due to E-Commerce, says Fitch

The growth of e-commerce and the increasing emphasis on delivery speed as well as pick-up services for retail goods will likely precipitate a convergence of industrial distribution and retail real estate, says Fitch Ratings.

According to Fitch Ratings, ongoing changes for retail real estate and industrial space have put the future role of shopping centers and lower-quality malls in qu

Fitch affirms Bharti Airtel credit rating at BBB

Credit rating firm Fitch affirmed Bharti Airtel's long-term foreign currency issuer default rating at 'BBB' with stable outlook, reflecting the firm's ability to repay debt, reported PTI.

"Fitch Ratings has affirmed Bharti Airtel's (Bharti) long-term foreign currency issuer default rating (IDR) and senior unsecured rating at 'BBB'. The outlook on the I

S&P likely to follow regular rating review schedule for China - executive

BEIJING  - Standard & Poor's is likely to follow its regular ratings review schedule for China, and does not see any basis at this point in time for an out-of-schedule committee meeting, a senior director at the ratings agency told Reuters on Monday.

S&P has an AA- rating on China with a negative outlook that it has maintained since March last year. T

GST may not significantly boost revenues in short term: Fitch

Global rating agency Fitch Ratings has said that the Goods and Services Tax (GST) reform, being pitched as India's biggest reform that will come into effect from July 1, may not boost revenues significantly in the next few years. Commenting on the issue, Thomas Rookmaaker, Director, Sovereigns and Supranationals Group, Fitch Ratings said, "We do not expect it will lead to significantly

IFRS 17 adoption won`t change insurer ratings, says Fitch

IFRS 17, the new international accounting standard for insurance contracts published today, will not trigger any immediate rating changes when it comes into force, says Fitch Ratings. According to Fitch Ratings, new accounting standards have no immediate impact on an insurer's credit profile as they do not change the economic substance of its balance sheet.

The assets held and the

Global attacks spur demand for cyber insurance, says Fitch Ratings

The slew of recent ransomware attacks in over 150 countries reveals the widening scope of corporations' cyber risk exposures, which is likely to increase demand for related insurance protection, says Fitch Ratings. According to Fitch ratings, insurers are in a unique position to assist customers in addressing the cyber threat.

However, a cautious approach to adding cyber exposures

India making concerted push to tackle bad loan: Fitch

Fitch Ratings said Indian authorities are making a more concerted push to clean up bad loans in the banking sector but the move would impinge on banks' profitability in the short-term, reported PTI.

It said that asset resolution would be a dominant theme in the sector over the next few years and further losses may push some weaker banks closer to breaching minimum capital requirem

Prospects for bad loan clean-up at Indian banks improving, says Fitch

Recent regulatory actions in India suggest the authorities are making a more concerted push to tackle banks' bad loan problems, says Fitch Ratings. The agency said that it believes that asset resolution will be a dominant theme in the sector over the next few years.

In the short term, this is likely to create provisioning costs that will mean continued pressure on bank profits, an

Fitch affirms India's rating at 'BBB-', outlook stable

Global ratings agency Fitch on Tuesday affirmed India's long-term foreign and local currency ratings at 'BBB-', the lowest investment grade, but said the outlook is "stable".

Further, the rating agency said it expected India's real Gross Domestic Product to grow at 7.7 per cent during 2017-18. 

"India's positive GDP growth outlook stan

RBI strengthens tools to intervene in ailing Indian banks

The Reserve Bank of India's (RBI) updated "prompt corrective action" (PCA) framework could suggest a greater willingness to take regulatory action to address problems at struggling banks, but its implementation is only likely to be effective if it is matched by credible plans to address banks' significant asset quality issues and capital shortages, says Fitch Ratings.

Cyber risk is a growing threat to financial institutions`says Fitch

Cyber-attacks against financial institutions are an increasingly significant risk, says Fitch Ratings. The global rating agency said that cyber risk is a growing threat that can adversely affect credit ratings as attacks can compromise customer data and disrupt websites, with detrimental financial or operational consequences for individual issuers and financial systems.

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