Oversupply risk in India's power sector, because of sustained low demand: Fitch Ratings
New Delhi [India], May 13 (ANI): India's power sector is facing a risk of oversupply because of sustained low electricity demand says a report by Fitch Ratings.
Fitch Ratings has affirmed Tata Steel Limited's (TSL) Issuer Default Rating (IDR) at 'BBB-' with a "negative" outlook, and the senior unsecured rating at 'BBB-'.
Fitch Ratings has affirmed stable outlook for three state-owned infrastructure financing companies -- REC Limited, Power Finance Corporation Ltd, and Indian Railway Finance Corporation Limited.
Adani Ports and Special Economic Zone Limited's (APSEZ) acquisition of the North Queensland Export Terminal (NQXT) will support its international growth strategy, says Fitch Ratings.
Fitch Ratings has lowered India's growth forecast for 2025-26 by 10 basis points to 6.4 per cent. For 2026-27 the growth forecast is lowered by 20 basis points to 6.3 per cent.
Fitch Ratings has sharply lowered its forecasts for world growth in response to the severe escalation in the global trade war, lowering world growth in 2025 by 0.4pp and China and US growth by 0.5pp, according to its its quarterly Global Economic Outlook.
Tariff revenues will help narrow the US budget deficit in 2025, but the hit to economic growth and additional tax cuts are likely to limit the size of any lasting fiscal benefit, Fitch Ratings said in a report.
Reciprocal tariffs imposed by the US significantly raise risks for a recession in the US and constrain the US Federal Reserve's ability to lower interest rates further, Fitch Ratings said in a note.
Trading partners of the US, particularly those emerging market economies where the tariff rates faced by US exporters exceed those charged on US imports, are at risk due to the Trump administration's impending reciprocity plans, Fitch Ratings said in a report.
Fitch Ratings has revised India's growth rate for FY25-26 to 6.5 per cent and to 6.3 per cent for FY26-27 in its March Edition of the Global Economic Outlook because of the US-imposed global trade war. However, it adds that India is somehow insulated because of its self-sufficiency.
President Donald Trump's reciprocal tariffs have started a global trade war and it will reduce not only the growth of the United States (US) and the world but also push up inflation and delay Federal Reserve rate cuts in US according to a report by Fitch Ratings.