Little risk to Indian saints in Adani Group row: Fitch

As reported by BQ Prime, But Saint’s “issuer default rating” is also driven by expectations that potential government support will be received, the report said. Fitch believes that Adani Group’s exposure to debt across all operations typically accounts for 0.8%-1.2% of total debt for Fitch-rated Indian banks, which account for 7%-13% of total equity. State Bank of India, ICICI Bank Limited, Axis B Limited, Union Bank of India, Punjab National Bank, Bank of India, Bank of Baroda and Canara Bank are among Indian lenders rated by Fitch Ratings.

The report said, “There is a risk that State Bank (public sector scrip) may face pressure to refinance the Adani Group, if foreign banks reduce their exposure to the group’s debt.” The weak are weak in the global market. According to Fitch, non-fund-based exposure to Indian stocks—through bonds or equities—is expected to be small compared to credit exposure for the Adani group.

The impact could be further compounded if the dispute generates financial fracking for other Indian debtors, increasing their exposure to loans from local lenders, the report said.

The impact could be further compounded if the dispute generates financial fracking for other Indian debtors, increasing their exposure to loans from local lenders, the report said. “The country’s medium-term economic growth could also suffer if the conglomerate’s vast corporate sector is negatively impacted or substantially increases the cost of capital for Indian firms and hurts investment,” the report said. It happens”. Overall, Fitch said it believes the economic and sovereign impact of the Adani dispute will be limited.