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The Indian economy is expected to grow 13.7 per cent in the financial year 2021-22 (FY22), registering a strong rebound from a 7 per cent contraction this fiscal year, said Moody’s on Thursday, adding the country’s fiscal position would remain weak in 2021, posing a key credit challenge. Moody’s had in November last year projected the economy to contract 10.6 per cent in FY21 and return to growth of 10.8 per cent in FY22. The upgrade in growth forecast comes on the back of normalisation of activity and growing confidence in the market with the rollout of Covid-19 vaccine. On fiscal consolidation, the global rating agency said the prospects remain weak, particularly given the government’s mixed track record of implementing revenue-raising measures.
Stable outlook for Indian corporates: Moody’s and ICRA
February 25, 2021
Rating agencies caution, however, that Covid threat still looms large
Rating agencies Moody’s and ICRA have given a stable outlook for Indian corporates as consumption and investment demand show signs of recovery but caution that the coronavirus threat still looms large.
While Moody’s stated that supportive government measures and funding environment would boost corporate and infrastructure recovery, ICRA said the recovery would be led by sectors such as ferrous and non-ferrous metals, auto and textiles, where operating conditions are improving rapidly.
The stable outlook reflects easing pandemic restrictions, government stimulus aimed at boosting consumption and investment, and a benign funding environment. Moody’s Indian affiliate, ICRA, has changed its outlook for some sectors, such as auto and textiles, to stable from negative on expectations of a swift demand recovery.
Moody s expects India s fiscal position to remain weak
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Icra revises JSW Steel’s outlook to stable from negative
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“The revision in the rating outlook reflects Icra’s expectation that JSW Steel Limited’s credit metrics would continue to improve in the near term on the back of improving operating conditions, leading to better profitability,” said Moody’s Indian arm, Icra said in a statement.
Agencies
“JSW Steel’s liquidity is adequate given the healthy cash flow from operations expected in FY2021,” the statement said.
Rating agency
Icra on Friday has revised its outlook for
JSW Steel to Stable from negative on the back of improving operating conditions which will lead to better profitability.
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