Tag: fitch rating

Fitch Ratings has revised the outlook on India's long-term foreign-currency Issuer Default Rating (IDR) from “negative” to “stable” on diminished downside risks to medium-term growth. It affirmed the IDR at 'BBB-'. The revision in outlook reflects India's rapid economic recovery and easing financial sector weaknesses, despite near-term headwinds from the global commodity price shock. “We expect robust growth relative to peers in order to support credit metrics in line with the current rating,” Fitch said in a statement. Read more

Fitch Ratings today(8th December 2020) raised India's GDP forecast to -9.4 percent in the current fiscal year to March 2021 from a previously projected contraction of 10.5 percent after the economy staged a sharper rebound in the second quarter. In its Global Economic Outlook, Fitch said the coronavirus recession has inflicted severe economic scarring and the country needs to repair balance sheets and increase caution about long-term planning. "We now expect GDP to contract 9.4 percent in the fiscal year to end-March 2021 (FY21) (+1.1 percentage point), followed by +11 percent growth (unchanged) and +6.3 percent growth (+0.3pp) in the following years," the rating agency said. The projections compare to a GDP growth of 4.2 percent in 2019-20 (April 2019 to March 2020) fiscal and 6.7 percent annual expansion between 2015 and 2019. Read more

The outlook on India's sovereign ratings has been revised to negative from stable but retained the ratings at the lowest investment grade by the Fitch Ratings. Earlier, S & P's retained the ratings and outlook on India while Moody's Investors Service downgraded the ratings but maintained the outlook. Fitch expects economic activity to contract by five percent in the current financial year from the strict lockdown measures imposed since 25 March 2020, before rebounding by 9.5 percent during the next year. The rebound will mainly be driven by a low-base effect. Read more

In its Global Economic Outlook 2020, Fitch said the number of people affected by coronavirus will keep rising in the coming weeks but that the outbreak will remain contained. However, there are downside risks to this situation. Fitch in December 2019 projected India's growth at 5.6 percent for 2020-21 and 6.5 percent in the following year. "Supply-chain disruptions are expected to hit investments and exports. We see GDP growth to remain broadly steady at 5.1 percent in the fiscal year 2020-2021 following growth of 5.0 percent in 2019-2020," Fitch said. For 2021-22, Fitch projected India's growth to be 6.4 percent. Read more