The company is targeting around $250 million through sustainability linked loan and social loans in FY25, Roy said. It has also drawn $ 50 million of JICA funds to finance women borrowers.
Gradual unlocking along with measures taken by the Reserve Bank of India (RBI) and Government has led to an uptick on rating upgrades.
Investment cycle in the private sector is negative with capacity utilisation still only around 70 percent. KVS Manian at Kotak Mahindra Bank says utilisation levels will likely cross 80 percent over the next 9-12 months, and trigger investments.
This makes the ratio of upgrades to downgrades, or the credit ratio, at a weak 0.9, a against 1.94 a year ago, or 460 upgrades against 237 downgrades, suggesting improvement in credit quality is still some time away.
The large companies need to deleverage balance-sheets stretched by loans for an improvement in the overall NPA situation of banks, which is around 12 per cent of the system now, it added.
"The tariff increase will reduce CGPL's financial losses and benefit Tata Power Company's (TPC) credit quality. CGPL is a material part of TPC group and its debt accounted for approximately 30 per cent of total consolidated debt as of 31 March 2013," Moody's Investors Service said.
Net non-performing assets or bad loans of 39 listed banks inched up just 0.8 percent or Rs 750 crore in the fourth quarter of 2012-13 according to a study. However, it does not signify any improvement in bank credit quality.
Lenders are yet to break free of the clutches of the economic slowdown. Banks' fourth quarter (January-March, FY13) earnings are unlikely to have any positive surprises. Private lenders would continue to perform well while their public sector peers can see some moderation in net interest margins.
The Indian government's recent proposal to restructure debt of state-owned power distribution companies will provide them only a temporary reprieve from weakening finances, says global rating agency Standard & Poor's.
Spain and Italy need a full-scale bailout from the European Union because of their high levels of government debt and the credit quality of their banks, and will likely seek help within the next 6 months, according to Sean Egan, Founding Partner and President of Egan-Jones, an independent ratings agency.
CNBC-TV18 reports on ratings agency Moody's downgrading the credit ratings of PSU oil and gas majors ONGC and GAIL based on the credit quality of the government of India.
Fitch Ratings has come out with its special report on power projects. According to the rating agency, due to the increasing cost of imported coal, which has doubled to about USD120/tonne currently (over FY09 prices), the variable cost of power generation has surged.
In the present environment, short term income funds with good underlying credit quality, have the potential to offer the best risk adjusted returns for investors with a 6 months to 1 year investment horizon.
Watch out what brokerages have to say about a few cherry-picked stocks for today.