No immediate impact on credit ratings of Adani Group: Fitch Ratings
The rated businesses are separately listed (directly or effectively), operate in utility or infrastructure businesses, and with relatively stable cash flow.
The rated businesses are separately listed (directly or effectively), operate in utility or infrastructure businesses, and with relatively stable cash flow.
Notably, Indian telecom operators continue to have one of the lowest monthly average revenue per user (USD 2.5) and the highest monthly data usage (20 GB) in the world.
Indian power generators in general and renewable companies, in particular, will benefit from the counterparty shift to commercial and industrial (C&I) customers from weak state-owned distribution companies, said Fitch Ratings.
In its latest report, Fitch Ratings said India's external buffers appear sufficient to cushion risks associated with the rapid monetary policy tightening in the US and high global commodity prices.
RBI too earlier this month cut India's growth forecast to 9.5 per cent for this fiscal, from 10.5 per cent estimated earlier.
The risk of further waves of infection remains significant in markets with slow roll-outs of vaccination, including India, but healthcare systems are better prepared after the second wave, which should limit the impact.
The measures announced by RBI on May 5 will provide some relief to financial institutions in the next 12-24 months.
In terms of growth projections, Fitch expects economic activity to grow by 12.8 per cent in the fiscal year ending March 2022 (FY22).
It said a key COVID hotspot is Maharashtra, the state with the largest economic contribution in India at 13-14 per cent of the national GDP.
Fitch's latest economic outlook projected growth at 11 per cent in FY22 then at around 6.5 per cent a year through to FY26. This pace of expansion reflects base effects and the closing of output gaps after the pandemic shock.
