Fitch Financial News

By Marcela Ayres

Fitch highlighted that traditional and alternative investment managers face different challenges in the year ahead, particularly as growth continues to tighten.

(Reuters) — U.S. stock index futures edged lower on Monday as investors awaited economic data later this week that could shape expectations around how long the Federal Reserve will keep interest rates elevated.

(Reuters) — Global ratings agency Fitch said on Monday it plans to withdraw all the ratings on China's Country Garden Services Holding on or about Dec. 12 for commercial reasons.

Sanjeev Gupta’s InfraBuild is paying hundreds of millions of dollars in fees to the British industrialist’s other companies as payment for “shared services”, just one part of a complex series of transactions between the Australian company and the businessman’s broader, ailing steel empire.

₹17,000 crore per month. Also Read: Down 4%, Nifty Midcap 150 declines more than Nifty 50 in October on global headwinds On Friday, the domestic equity benchmarks Sensex and Nifty 50 settled higher on Friday supported by fag-end buying in select heavyweights, including HDFC Bank and ITC, despite weak global cues. Nifty 50 ended at 19,425.35, up 30 points, or 0.15 per cent, while the 30-share Sensex pack ended 72 points, or 0.11 per cent, higher at 64,904.68.

The credit rating agency Moody’s Investors Service has lowered its outlook on the U_S_ government’s debt to “negative” from “stable.”

Middle East could upend countries’ inflation and growth calculations, leading to a higher than expected inflation for India as well, according to Fitch Ratings. “Higher oil prices would lead to higher-than-expected inflation rates in 2024, followed by corrections in 2025.

Fitch Ratings predicts that higher-than-expected oil prices, stemming from potential disruptions in the Middle East's oil supply due to conflicts, could significantly impact global economic growth and lead to a surge in inflation. According to Fitch's Global Economic Outlook (GEO), a scenario with average oil prices of USD 75 per barrel in 2024 and USD 70 per barrel in 2025 could be upended if oil prices spike to USD 120 per barrel in 2024 and USD 100 per barrel in 2025 due to supply restrictions. The simulations, conducted using the Oxford Economics Global Economic Model, reveal a potential 0.4 percentage point (pp) reduction in world Gross domestic product (GDP) growth in 2024, with a lingering 0.1 pp lower growth in 2025. Despite the modest rebound anticipated in 2025, Fitch suggests a persistent moderate impact beyond the initial shock. The impact of higher oil prices would be felt across the board, with the absence of significant growth rebound in 2025 indicating a potentially longer-lasting effect on GDP levels in most countries. Notably, the negative growth impact in 2024 ranges from 0.1 pp in Indonesia to a substantial 0.9 pp in Korea, with the US, the Eurozone and Japan experiencing impacts of 0.5 pp. Emerging market countries like South Africa and Turkey would face significant impacts of 0.7 pp, while Russia and Brazil, owing to their reliance on oil production, would experience varied effects. The aggregate impact on the Fitch 20 suggests a global GDP growth shortfall of 0.4 pp in 2024 and 0.1 pp in 2025. Moreover, higher oil prices would lead to elevated inflation rates in 2024, with India, Turkey, and Poland experiencing the highest percentage point rises. Developed economies would witness more

(Reuters) -Moody's on Friday changed its outlook on the U.S. credit rating to «negative» from «stable» citing large fiscal deficits and a decline in debt affordability.

Bank of India (RBI) with a sense of assurance, enabling them to maintain interest rates at a stable level over the coming months, as suggested by experts. According to a Mint poll of 17 economists, India’s retail inflation likely cooled to 4.8 per cent in October from 5 per cent in September. However, economists warned that vegetable prices still pose an upside risk to their forecasts.

Fitch Ratings on Thursday said it expects improvement in trade receivables of power utilities, particularly from weaker state-owned distribution companies (discoms), and the pace of capital expenditure (capex) to be the key credit drivers for rated power utilities in the near to medium term. Indian power utilities have seen improvements in their receivables over the past two years, especially since the implementation of the late payment surcharge rules in June 2022. The average receivable days of seven Indian power utilities have fallen to 85 in FY23 from 142 days in FY21, as per the ratings agency. The reduction in receivable days, especially for renewable energy generation companies, by about 100 days in FY23 has been driven largely by receipt of current payments and outstanding dues in monthly instalments, in line with the late payment surcharge rules.

UBS on Wednesday began selling Additional Tier 1 (AT1) bonds — which were at the heart of controversy during its emergency rescue of Credit Suisse — for the first time since completing the takeover.

By Nivedita Balu

By Duncan Miriri and George Obulutsa

By Ankika Biswas

KPMG, the auditor of British industrialist Sanjeev Gupta’s InfraBuild, has warned of “material uncertainty” for the Australian steel distribution group if it is unable to complete a $US350 million ($544 million) financing offer to replace debts that fall due late next year.

(Reuters) — Ratings agency Fitch downgraded Egypt's long-term foreign-currency issuer default rating (IDR) to 'B-' from 'B', citing increased risks to external financing.

Much of the fossil fuel industry may be facing an era of credit downgrades if producers prove too slow to adapt to a low-carbon future, according to Fitch Ratings.

Chieko Tsuneoka contributed to this article. Write to Jiyoung Sohn at [email protected] and Asa Fitch at [email protected]

By Daniel Wiessner and Katherine Masters