The rating agency affirmed Bharat Petroleum Corporation Ltd''s (BPCL) long-term foreign-currency issuer default rating (IDR) at ''BBB-''. The outlook is ''Negative''.
Fitch Ratings too on September 8 projected a massive 10.5 percent contraction of India's GDP in the current financial year.
The government-led merger of state-owned banks helped them to consolidate their market position in the last few years, but their market shares will continue to erode if they do not raise adequate capital to absorb future stress and support growth, the rating agency said
Attributing the marginal improvement in July volumes to pent-up demand following easing of lockdown restrictions, Fitch said the problems facing the auto industry remains unabated.
Fitch said cash flow implications of the moratorium, which the RBI has extended to end-August, have not been uniform across the industry, affecting liquidity profiles of some NBFIs more materially and placing pressure on their ability to repay or refinance upcoming obligations.
The PSUs whose rating outlook has been revised include IOC, Bharat Petroleum Corp Ltd (BPCL), Oil India Ltd (OIL), GAIL India Ltd, Power Grid Corp of India Ltd and NTPC Ltd.
Experts are of the view that Moody’s downgrade is unlikely to take the Nifty to a new low because the market seems to be climbing a wall of worries on the back of strong liquidity
On March 11, the Ministry of Finance increased allocation - 0.008 per cent of the country's GDP - to the health services division to support an expansion of healthcare spending, Fitch Solutions Country Risk and Industry Research (a unit of Fitch Group) said.
Despite additional funding, the continued lack of medical investment and healthcare infrastructure will present challenges to mounting an effective response in India against COVID-19 pandemic, Fitch Solutions has said.
The RBI's Rs 50,000 crore Special Liquidity Facility for Mutual Funds (SLF-MF) will provide 90-day repo funding to banks, to extend liquidity to - or purchase commercial paper and debt securities from - local mutual funds.
Reliance Retail, RIL's retail arm, has also partnered with Facebook's WhatsApp to allow RIL's e-commerce business users to use the WhatsApp platform.
This move will have negative consequence for the company's debt profile which will spike its borrowing cost.
The score has been revised to “BB” from “BB+” earlier, the agency said, pointing out that COVID-19 outbreak ups the worries for the sector, which is already reeling under weak business and consumer confidence.
The revision of the outlook reflects the risks in the company's ability to deleverage and generate positive free cash flow because of the various challenges in the Indian market, JSW Steel said.
Automakers could also face production disruptions if the novel coronavirus outbreak in China leads to a prolonged halt in supply of required auto components, as the industry sources as much as 27 per cent of its demand from China worth around USD 5 billion, according to many analysts.
The government last month promulgated an ordinance for amendment in the MMDR Act 1957 and the CMSP (Coal Mines (Special Provisions) Act, 2015, a move aimed at enhancing the ease of doing business, among others.
"Fitch Ratings has assigned a rating of 'BB' to Glenmark Pharmaceuticals Ltd's (BB/Stable) proposed US dollar-denominated senior unsecured notes," it said in a statement.
According to Fitch Ratings, 'BB' ratings indicate an elevated vulnerability to default risk, particularly in the event of adverse changes in business or economic conditions over time.
"The notes are rated at the same level as Bharti's foreign-currency senior unsecured rating of 'BBB-' and are also placed on RWN," it said in a statement.
Fitch affirmed HPCL's rating 'BBB-' with stable outlook, in line with the credit profile of its largest shareholder Oil and Natural Gas Corp Ltd (ONGC).
In a bid to alleviate significant debt levels in the power industry, India has proposed to waive carbon taxes on coal (Rs 400 rupees/tonne), it said.
"Short-term expansion of India's building sector will be driven by a mixture of fiscal support and government policies supporting the housing market, as well as heightened activity within the logistics, retail and industrial buildings sectors," it said in a statement.
In a statement, Fitch Ratings said it has revised its outlook on CIHL to negative from stable and affirmed the Long-Term Issuer Default Rating (IDR) of 'BB-'.
"India's weaker macroeconomic backdrop is likely to add to the existing funding, growth and asset-quality strains weighing on the Indian NBFCs (non-banking financial companies) industry as a whole, underpinning our negative outlook for 2020," the ratings agency said in a statement.
"India's proposal to cap trade margins...will not significantly hurt the profitability of pharmaceutical companies, as the proposal does not restrict the margins at which pharma companies sell to distributors," Fitch said in a statement.