Budget and Rating Agencies

2 Feb 2023 , 01:53 PM

• 33% increase in capital investment outlay, with a focus on Railway and Roads, augurs well for capex cycle recovery. The resolve to keep fiscal deficit in check may also translate into a benign interest rate environment and support bond issuances.
• This will benefit credit rating agencies to varying degrees. CARE, ICRA and CRISIL have varying levels of exposure to India at 88%, 59% and 25% respectively.

Analysts of IIFL Capital Services believe power impact of the budget announcements on the rating agencies sector.