Moody’s Investors Service | CHINDIA ALERT: You'll be living in their world, very soon

Chindia Alert: You’ll be Living in their World Very Soon

aims to alert you to the threats and opportunities that China and India present. China and India require serious attention; case of ‘hidden dragon and crouching tiger’.

Without this attention, governments, businesses and, indeed, individuals may find themselves at a great disadvantage sooner rather than later.

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India’s Credit Outlook Gets Boost From Moody’s – India Real Time – WSJ

India has inched farther away from junk-bond status.

Moody’s Investors Service MCO +0.71% on Thursday changed its ratings outlook on Asia’s No. 3 economy to positive from stable, citing the “increasing probability that actions by policy makers will enhance the country’s economic strength.” But it maintained its Baa3 rating, one level above junk, saying the Indian economy is still heavily exposed to external and financial shocks. Moody’s has rated India at Baa3 since 2004.

The move is a vote of investor confidence in the economic management of Prime Minister Narendra Modi and Reserve Bank of India Gov. Raghuram Rajan. Standard & Poor’s raised its India outlook to stable last fall. Fitch Ratings has had a stable outlook on India since 2013.

All three of the big agencies currently assign Indian debt their lowest investment-grade ratings. They cite similar reasons. Inflation is high. The public sector—the federal government plus the states—is highly indebted. Infrastructure is sorely deficient. The banking system is burdened with bad assets.

“While policies are beginning to address each of these factors, the extent of likely improvements is as yet unclear,” Moody’s said Thursday.

via India’s Credit Outlook Gets Boost From Moody’s – India Real Time – WSJ.

Posted in Economics, India alert | 1 Comment »

Tags: Bond credit rating, Central bank, Credit rating, Credit rating agency, Fitch Group, Fitch Ratings, India, Moody's Investors Service, Moody’s Investors Service MCO, Prime Minister Narendra Modi, Raghuram Rajan, Reserve Bank of India, Run batted in, Standard & Poors

20/02/2014

* Third Front Stokes Fears of Unstable Government: Corporate India – Businessweek

An alliance of regional parties in India is eyeing power in the general election due by May. That’s rattling some of the nation’s companies.

Eleven disparate groups holding 17 percent of parliamentary seats formed a bloc this month to pass legislation, a precursor to a possible alternative to the ruling Congress and the main opposition Bharatiya Janata Party. Moody’s Investors Service warned last week that any so-called third front government could lack a common agenda to revive the country’s struggling economy, pressuring both the rupee and India’s credit rating.

“The minimum they can do is to remove the uncertainty on the policy front so that having invested we don’t start regretting,” Debnarayan Bhattacharya, managing director of Hindalco Industries Ltd., said in a Feb. 14 interview, referring to the next government of Asia’s third-largest economy. Otherwise “people will think twice, thrice, four times before investing.” Hindalco is India’s second-largest aluminum maker.

via Third Front Stokes Fears of Unstable Government: Corporate India – Businessweek.

Posted in big business, Economics, India alert | Leave a Comment »

Tags: Asia, Bharatiya Janata Party, Debnarayan Bhattacharya, disparate groups, Hindalco Industries, Hindalco Industries Ltd., India, Moody's Investors Service, New Delhi, parliamentary seats, United States Congress

11/02/2014

Indian Election Not a ‘Game Changer’ – India Real Time – WSJ

A new Moody’s report argues that the biggest event on India’s political calendar this year will be neutral at best for the country’s creditworthiness—although, at worst, it could heighten existing risks.

India’s national election, due before the end of May, is dominating the country’s newsstands, and has put a freeze on many major policy and investment decisions. Perceptions that the Bharatiya Janata Party’s popular prime ministerial candidate, Narendra Modi, is pro-business have buoyed Indian stock markets even as corporate earnings have disappointed.

But the New York-based credit-ratings agency says the contest between the governing Congress party and the BJP will hardly be decisive for India’s economic prospects.

A strong showing by either of the two major parties “would not be a near-term game changer,” it says in the report. The correlation between economic performance and the party in power is historically quite weak, it notes. What could be a bigger influence is the state of the global economy. Factors such as the budding recovery in the U.S. and Europe, the shaky economic outlook in China, and the Federal Reserve’s withdrawal of monetary stimulus will continue to buffet India and many other big emerging markets.

via Indian Election Not a ‘Game Changer’ – India Real Time – WSJ.

Posted in Elections, India alert, Internal politics, Politics | Leave a Comment »

Tags: Bharatiya Janata Party, China, Credit risk, Federal Reserve System, India, Indian National Congress, Moody's Investors Service, Narendra Modi

CHINDIA ALERT: You'll be living in their world, very soon

Chindia Alert: You’ll be Living in their World Very Soon

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India’s Credit Outlook Gets Boost From Moody’s – India Real Time – WSJ

* Third Front Stokes Fears of Unstable Government: Corporate India – Businessweek

Indian Election Not a ‘Game Changer’ – India Real Time – WSJ

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