All posts tagged: Moody's

Moody`s cuts India`s FY27 GDP growth estimates to 6 pc amid West Asia conflict

Moody`s cuts India`s FY27 GDP growth estimates to 6 pc amid West Asia conflict

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Moody`s Ratings has slashed India`s economic growth estimates for the current fiscal to 6 per cent from 6.8 per cent earlier, saying the ongoing conflict in West Asia will moderate growth momentum and raise inflation risks. In its credit opinion report on India, Moody`s said prolonged disruptions, particularly LPG shipments due to the conflict, would lead to near-term household shortages, higher fuel and transport costs, and spillovers to food inflation through India`s reliance on imported fertilisers. The region accounts for around 55 per cent of crude oil imports and over 90 per cent of liquified petroleum gas (LPG) supplies to India. “While inflation remains contained for now, geopolitical risks have tilted the inflation outlook to the upside,” Moody`s said while projecting inflation to average 4.8 per cent in FY27, up from 2.4 per cent in FY26. With inflation risks re-emerging and growth remaining robust, policy rates are likely to be held steady or raised gradually in fiscal 2026â¿¿27, depending on the duration of geopolitical tensions and their pass-through to food and fuel prices, Moody`s said. …

India budget ‘tactical’, not ‘breakthrough’, Moody’s Ratings says| India News

India budget ‘tactical’, not ‘breakthrough’, Moody’s Ratings says| India News

Published by Parlour News

India’s annual federal budget was “tactical” but not a “breakthrough”, Moody’s Ratings said in its reaction to a government roadmap for the next financial year. Finance Minister Nirmala Sitharaman shows the digital tablet, enclosed in a traditional red ‘bahi-khata’ style pouch, at the Parliament premises before presenting of the �Union Budget 2026-27�, in New Delhi, Sunday, Feb. 1, 2026. (PTI) Planned fiscal consolidation, which will bring the budget gap to 4.3% from 4.4% in the current year, will not change India’s credit profile, Christian de Guzman, senior vice president at Moody’s Ratings, told Reuters. “(Despite India’s) lengthening track record of deficit consolidation or fiscal discipline, this deficit is still wider than what it was prior to COVID,” Guzman said. “We haven’t seen the fiscal metrics improve sufficiently enough to actually change the credit profile,” he said. The economy is forecast to grow 7.4% in the current financial year, with inflation likely to be near 2%. The fiscal deficit for the year is set to be 4.4% of gross domestic product. Also Read | No big …

Moody’s Flags IndiGo’s Planning Failure As ‘Credit Negative’, Cites Risk of Heavy Financial Damage | Business News

Moody’s Flags IndiGo’s Planning Failure As ‘Credit Negative’, Cites Risk of Heavy Financial Damage | Business News

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Last Updated:December 09, 2025, 00:05 IST Moody’s says IndiGo faces financial and reputational damage after 1,600 flight cancellations due to poor planning for aviation regulations, calling the disruptions credit negative. Moody’s cited IndiGo’s “significant lapses in planning, oversight and resource management” as the primary cause. The disruptions and cancellations in IndiGo flights due to airline’s failure to plan for aviation regulations communicated to industry more than a year in advance could result in financial damage from loss of revenue as well as potential penalties for cancellations, Moody’s Ratings said on Monday. PTI quoted a note by Moody’s stating that the disruptions are “credit negative” for the airline. “Despite temporary reprieve, failure to effectively plan for new aviation regulations is credit negative.” The flight cancellations started on December 2. The disruptions, which took place amid peak winter schedules, caused over 1,600 flight cancellations on December 5, after similar operational issues in November left more than 1,200 flights grounded. Over 500 flights were cancelled on Monday. “The disruptions are credit negative because IndiGo could face significant financial …

Moody’s downgrades US: What it means for the world’s largest economy | Business News

Moody’s downgrades US: What it means for the world’s largest economy | Business News

Published by Parlour News

Nearly four months after Donald Trump assumed charge as the President of the US, Moody’s Ratings on Friday downgraded the US government’s rating by one notch, reflecting the increase over more than a decade in government debt and interest payment ratios to levels that are significantly higher than similarly rated sovereigns. The global rating firm slashed the long-term issuer and senior unsecured ratings of the US to Aa1 from Aaa and changed the outlook to stable from negative. Moody’s said successive US administrations and Congress have failed to agree on measures to reverse the trend of large annual fiscal deficits and growing interest costs. “We do not believe that material multi-year reductions in mandatory spending and deficits will result from current fiscal proposals under consideration,” it said. Story continues below this ad “Over the next decade, we expect larger deficits as entitlement spending rises while government revenue remains broadly flat. In turn, persistent, large fiscal deficits will drive the government’s debt and interest burden higher,” Moody’s said. The US’ fiscal performance is likely to deteriorate …

Bad News For Trump, US Loses Last AAA Rating, Moody’s Flags Rising Debt

Bad News For Trump, US Loses Last AAA Rating, Moody’s Flags Rising Debt

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The United States lost its last triple-A credit rating from a major agency on Friday as Moody’s announced a downgrade, citing rising levels of government debt and dealing a blow to Donald Trump’s narrative of economic strength and prosperity. The downgrade to Aa1 from Aaa adds to the bad news for the US president, coming on the same day his flagship spending bill failed to pass a key vote in Congress due to opposition from several Republican fiscal hawks. Explaining its decision, the ratings agency noted “the increase over more than a decade in government debt and interest payment ratios to levels that are significantly higher than similarly rated sovereigns.”  In its decision, Moody’s warned that it expects federal deficits to widen to almost nine percent of economic output by 2035, up from 6.4 percent last year, “driven mainly by increased interest payments on debt, rising entitlement spending, and relatively low revenue generation.” As a result, it expects the federal debt burden to increase to “about” 134 percent of Gross Domestic Product (GDP) by 2035, …

Greek government debt raised to investment grade by Moody’s, closing the door on a painful era | World News

Greek government debt raised to investment grade by Moody’s, closing the door on a painful era | World News

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ATHENS, Greece — Greece’s center-right government on Saturday welcomed a credit rating upgrade by Moody’s, the last major ratings agency to lift junk status on government bonds that began 15 years ago during a severe debt crisis. Greek government debt raised to investment grade by Moody’s, closing the door on a painful era “ upgrade marks the closing of a great cycle for the Greek economy and certifies the country’s return to European normality,” Finance Minister Kostis Hatzidakis said, describing the action as “a success not only of the government, but of all Greeks.” Moody’s announced the upgrade to Baa3 from Ba1 late Friday. It cited public finances that “have improved more quickly than we had expected” as a key factor in its decision. The agency highlighted the government’s policy stance, institutional improvements and stable political environment, saying it expects Greece to “continue to run substantial primary surpluses which will steadily decrease its high debt burden.” Although ratings agencies began returning Greece to investment grade in late 2023, the good news was met with relief …

Indian Economy In “Sweet Spot”, Says Moody’s, Forecasts 7.2% Growth In 2024

Indian Economy In “Sweet Spot”, Says Moody’s, Forecasts 7.2% Growth In 2024

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Moody’s said household consumption in India is poised to grow (Representational) New Delhi: Indian economy is in a sweet spot, with a mix of solid growth and moderating inflation, Moody’s Ratings said, forecasting a 7.2 per cent GDP growth in the 2024 calendar year and 6.6 per cent in the next. In its Global Macro Outlook 2025-26, the rating agency said the global economy has shown remarkable resilience in bouncing back from supply chain disruptions during the pandemic, an energy and food crisis after the Russia-Ukraine war began, high inflation and consequent monetary policy tightening. “Most G-20 economies will experience steady growth and continue to benefit from policy easing and supportive commodity prices,” it said. However, post-election changes in US domestic and international policies could potentially accelerate global economic fragmentation, complicating ongoing stabilisation. The aggregate and net effects of trade, fiscal, immigration and regulatory policy changes will expand the range of outcomes for countries and sectors. On India, Moody’s said the real GDP expanded 6.7 per cent year-over-year in the second quarter (April-June) of 2024, …

Trump’s presidency likely to benefit India, ASEAN countries as investments divert from China: Moody’s – India TV

Trump’s presidency likely to benefit India, ASEAN countries as investments divert from China: Moody’s – India TV

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Image Source : AP Donald Trump A day after Donald trump won the US presidential elections, Moody’s Ratings said on Friday that Trump’s presidency may see trade and investment flows diverting away from China as the US tightens investments in strategic sectors but this shift might benefit India and ASEAN countries. The November 5 election of Trump as the next US President will likely materially shift its policies from those of the current Joe Biden administration. In a second Trump administration, Moody’s expects large fiscal deficits, protectionist trade actions, climate-measure rollbacks, a stricter stance on immigration, and easing regulations. Trump likely to pursue aggressive immigration policies Trump is likely to pursue more aggressive immigration policies, including increased deportations, the construction of additional border barriers, stricter visa regulations, and reduced asylum grants. “Although aimed at reducing unauthorised immigration and prioritising legal immigration based on merit, they could lead to labour shortages in sectors that rely heavily on immigrant labour, such as agriculture, retail, hospitality, construction and healthcare,” Moody’s said in its comment on US presidential elections. …

Heat Island Effect Can Make Core Of Cities 7 Degrees Hotter: Expert To NDTV

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Mr Muir-Wood said the effects can be mitigated if there is a committed and strong city administration. New Delhi: As heat waves increase in India with the rise in global warming, cities are particularly vulnerable because temperatures at the heart of the urban jungles can be as many as seven degrees higher than the areas surrounding them, a leading expert has said. Speaking exclusively to NDTV on Thursday, Robert Muir-Wood, Chief Research Officer at Moody’s RMS – a risk management company – attributed this rise to a phenomenon called the urban heat island effect which, he said, is not only detrimental to productivity but can also cause illness.  Heat deaths have risen in India in the past decade and, while all metropolises are vulnerable to the heat island effect, the problem is more acute in India, where cities like Mumbai, Delhi, Chennai and Kolkata have a very high population density. Vanishing greenery in the cities has exacerbated the problem, which is likely to get worse as almost 60% of the global population will be living …