Covid-19 still a drag on Asia Pacific issuers: S&P ANI | Updated: Apr 12, 2021 11:33 IST
While this ratio is a slight improvement over recent months, it still implies a significant likelihood of downgrades or defaults in 2021, according to the report titled Sector Roundup Asia Pacific Q2 2021: The Climb Back Is Steeper For Some published on Monday. The economic recovery in Asia Pacific indicates an upside to revenue in 2021, said Eunice Tan, a credit analyst at S&P Global Ratings. However, the substantial hit to borrowers financials in 2020 means that a full recovery to 2019 credit metrics is unlikely for the majority of issuers until well into 2022.
S&P raises Tata Steel rating to BB-minus on deleveraging, strong operating momentum ANI | Updated: Apr 06, 2021 11:41 IST
It also raised long-term issue rating on senior unsecured notes issued by ABJA.
It estimated adjusted debt levels for Tata Steel will decline by about 30 per cent by March 2023 from about Rs 1.1 lakh crore in March 2020. About half of this decline is expected to have been delivered in fiscal 2021 (year ended March 2021).
Tata Steel has committed to reducing absolute debt levels by at least one billion dollars (about Rs 7,240 crore) per year from fiscal 2022.
The company s free operating cash flows will be adequate to facilitate this reduction over the next two years, even with revised capital expenditure (capex) estimates of about Rs 9,000 crore per year, up from Rs 5,000 crore to 6,000 crore in fiscal 2021.
Emerging Asia s recovery can withstand reflation trade: S&P ANI | Updated: Mar 17, 2021 10:49 IST The recovery across Asia s emerging economies should withstand rising US yields so long as this reflects an improving growth outlook and reflation rather than a monetary shock, said Shaun Roache, Asia Pacific Chief Economist at S&P.
In 2013, US yields leaped after the Federal Reserve indicated it will begin unwinding its quantitative easing programme. The resulting panic over rising credit costs led to sharp outflow from emerging markets, including Asia s, and forced central banks to hike interest rates. Not all yield shocks are created equal, said Roache.
Transition finance can be a path to carbon neutrality: S&P ANI | Updated: Mar 10, 2021 11:21 IST
Singapore, March 10 (ANI): Transition finance can contribute up to one trillion dollars per year to the economy as companies in hard-to-abate sectors raise capital and use proceeds for activities that help them reduce carbon footprint, S&P Global Ratings said on Wednesday.
As the transition to a net-zero economy gains traction, new sectors and issuers will enter the market, expanding the pool of investable sustainable financing and allowing investors to diversify their contribution to sustainability objectives, S&P said in a report titled Transition Finance: Finding A Path To Carbon Neutrality Via The Capital Markets.
Asia Pacific central government borrowings to remain high this year: S&P ANI | Updated: Mar 02, 2021 11:29 IST
Long-term commercial borrowing for the region is likely to be 4.1 trillion dollars this year after reaching a record 4.6 trillion dollars in 2020, it said in a report.
Although it is a reduction from last year, sovereign commercial borrowing in 2021 will still be well above the sub-3 trillion dollar annual levels recorded in the few years leading up to 2019. We expect reduced issuances out of China and Japan to account for the bulk of decline.
Although the fighting against Covid-19 continues, its burden on government finances is likely to be lower. For one, vaccines being rolled out in many countries should allow governments to rein in the disease and lower the infection rates globally sometime this year.