Moody’s says India’s worsening water shortage may impact its sovereign credit strength
A prolonged heat wave this year has worsened the shortfall, including in Delhi and the southern tech hub of Bengaluru.
A prolonged heat wave this year has worsened the shortfall, including in Delhi and the southern tech hub of Bengaluru.
On the banking front, the report further said the Indian banking system is on a positive outlook because of good economic growth and healthy corporate credit quality.
The rating agency said the country needs the investment to meet the 500 GW target as coal would remain a key source of electricity generation for the next decade
A combination of weak growth in advanced economies, persistent inflationary pressures, the Russia-Ukraine conflict, tight financial conditions, and a subdued growth outlook for China will create a difficult environment for emerging markets (EM) in 2023, said Moody's Investors Service.
The high food and energy prices will curb economic growth and result in social tensions in 2023 and hence the outlook for sovereign creditworthiness is negative, said Moody's Investors Service on Tuesday.
The mounting debt will come on top of the already historically high sovereign and corporate debt levels in many advanced and emerging markets.
After pandemic-related shutdowns, production is now ramping up in the automotive and industrial sectors.
Auto unit sales will decline at least 30 per cent in 2020, following a decline of over 40 per cent in the seven months through July.
Moody's has maintained SBI's rating outlook, where applicable, as negative, in line with the outlook on India's sovereign rating.
The report, titled ‘Coronavirus fallout will leave banks with capital shortages again’ predicted that asset quality will deteriorate, led by retail and small business loans.
