Halister News

(Bloomberg) -- S&P Global Ratings is assuming Japan will have “material fiscal deficits” through 2020 and any improvements will only be gradual over the next few years.

• While fiscal policy is important, govt and BOJ’s ability to support economic growth and spur positive inflation will have a major bearing on fiscal outlook, Sovereign Analyst Craig Michaels says in response to email questions from Bloomberg
  • Economic growth is currently sound, but S&P is yet to see evidence that wages and inflation are going to pick up sustainably
• Japan’s 5-year credit-default swap has climbed to 41bps, highest since June 2016, from 31bps at the end of last month amid concern the country’s credit rating may be cut
  • Prime Minister Abe said on Monday it’s become difficult to meet target of achieving primary balance surplus by fiscal 2020
  • S&P has A+ rating for Japan’s long-term debt with stable outlook

To contact the reporter on this story: Masaki Kondo in Singapore at mkondo3@bloomberg.net To contact the editors responsible for this story: Tan Hwee Ann at hatan@bloomberg.net Nicholas Reynolds

(Bloomberg) -- Here’s a roundup of Indian co. debt-rating changes.

• To get this story sent to your inbox real-time, run NI INRATINGS, click on Display & Edit, then Set Alert Delivery

UPGRADES

• Agarwal Packers
  • Long-term bank facilities raised to BBB from BBB- at Crisil
  • Cites profitability improvement
• CMI Energy
  • LT bank facilities raised to BBB+(SO) from BBB(SO) at Care
  • Cites group’s improved operating performance
• Hindalco
  • Term loan, NCDs raised to AA+ from AA at Care
  • Cites significant improvement in capital structure due to prepayment of long term debt
• Ireda
  • Bonds, tax- free notes raised to AAA from AA+ at India Ratings
  • Cites Ireda’s role as a public policy institution for the government, strong and undeterred market share
• Jyothi Granite Exports
  • LT bank facilities raised to BB from BB- at Crisil
  • Cites sustained growth in revenue, steady profitability
• Panacea Biotec
  • LT bank facilities raised to B+ from D at Care
  • Cites improvement in debt servicing track record
• SEZ Vitrified
  • LT bank facilities raised to BB- from B+ at Crisil
  • Cites ramp-up in scale of operations
• Solairedirect Projects
  • Term loans raised to BBB+ from BBB at ICRA
  • Cites satisfactory operating track record of solar photovoltaic-based project
• Utkal Alumina International
  • Term loan raised to AA+(SO) from AA(SO) at Care
  • Cites significant improvement in capital structure due to prepayment of long-term debt amounting to INR22.8b

DOWNGRADES

• Sahakar Maharshi Shankarrao
  • LT bank facilities cut to B from B+ at Care
  • Cites erosion of net-worth
• Simplex Castings
  • Fund-based limit cut to BB+ from BBB- at India Ratings
  • Cites continuous breach of India Ratings’ negative rating guideline of net financial leverage above 3.5x due to addition of debt to fund working capital needs

--JACKIE EDWARDS