Ratings News

The current account deficit for the current fiscal is likely to come in close to 1.3 percent of the GDP, India Ratings and Research (Ind-Ra) said Tuesday.

India's fiscal deficit target for 2016-17 is likely to be adjusted higher to 3.7 percent of GDP, financial services major DBS said while highlighting that wider deficits carry the risks of a delay to rating upgrades.

Expressing concern over slowdown in the pace of reforms, Standard & Poor's has said India's rating could come under stress if government fails to pursue reforms agenda and overshoots fiscal deficit target.

Till March 2016, unrated companies or those with a sub-investment grade, have been allowed to only renew existing deposits on maturity, but barred from accepting fresh deposits.

Global rating agency S&P Monday ruled out a rating upgrade for India within a year while Fitch said the government's fiscal consolidation strategy spelt out in Budget is "less aspiring" than in the past.

The new performance criteria for equity infusion into public sector banks (PSBs) could potentially lead to a shakeup in the sector in the absence of a transition period and given the pending structural issues, rating agency ICRA said.

Global rating agency Moody's Investors Service Monday said it has withdrawn the 'Baa3' insurance financial strength rating of the Life Insurance Corporation (LIC).

Fitch Ratings Wednesday reaffirmed long- term issuer default ratings (IDRs) of nine banks, including State Bank of India (SBI), Bank of Baroda (BoB), Punjab National Bank (PNB) and ICICI Bank among others at 'BBB-' and also retained their credit rating as 'stable'.

Rating agency Moody's Monday said the budget 2014-15 has outlined steps to support faster economic growth, but absence of detailed implementation plan makes it modestly credit positive for India.

International rating agency Fitch Tuesday said India's economic growth will accelerate to 5.5 percent this financial year and 6.5 percent in FY16 due to the clear mandate received by the pro-reform Narendra Modi government.