Latest news with #FitchRatings
Zawya
2 days ago
- Business
- Zawya
Dubai's project delivery delays may ‘smooth' rise in supply: Fitch
Dubai could experience delivery delays, which may help 'smooth' the rise in supply, Fitch Ratings said in a report. The observation is based on the previous completion rates of some major projects. Over 2022–2024, 174,000 units were projected to be delivered, while the actual new supply was 97,000 units, a completion rate of only 56 percent, the rating agency said. The rate of delivery of new units depends on multiple factors, including the availability of skilled labour and contractors. While highly rated developers, such as Emaar Development, have a record of delivering projects on schedule, the off-plan sector is subject to regulatory oversight regarding the rate of new units entering the market. Fitch expects rising deliveries will lead to a record increase in supply, but 'natural' demand, driven by population growth, will be lagging. The stock of residential supply could grow on average by 16 percent over 2025–2027, assuming there are no delays in deliveries, compared with forecasted population growth of 5 percent, the rating agency said. (Writing by P Deol; Editing by Anoop Menon) (
Business Recorder
2 days ago
- Business
- Business Recorder
Fitch upgrades Pakistan's rating: macroeconomic stabilisation acknowledged
ISLAMABAD: Pakistan's economy has been upgraded by Fitch Ratings, acknowledging macroeconomic stabilisation in the outgoing fiscal year, supported by improved fiscal performance, current account surplus and easing inflation, says Monthly Economic Update released by Finance Division on Thursday. Revenue growth outpaced expenditure, reducing the fiscal deficit and further strengthening the primary surplus. The current account posted a $1.9 billion surplus, with a robust growth in exports and remittances. Inflation declined to a record low, paving the way for a more accommodative monetary policy stance. While Large Scale Manufacturing (LSM) activity remained sluggish, the automobile and export-oriented sectors showed encouraging performance. Fitch upgrades Pakistan rating to 'B-' Climate finance initiatives, including the Resilient and Sustainable Facility from the IMF and launching the Green Sukuk, reinforce the path toward inclusive and sustainable growth. POLICY INTERVENTIONS SUPPORTING AGRICULTURE GROWTH During the Rabi season 2024-25, wheat was cultivated on 22.07 million acres with an estimated output of 28.98 million tonnes. Farm input utilisation showed consistent improvement, supported by government efforts to ensure quality seeds, adequate credit, and availability of the machinery and fertilisers. Agricultural credit disbursement increased by 15.0 per cent to Rs1,880.4 billion during Jul-Mar FY2025, moving steadily toward the annual target of Rs2,572.3 billion. Imports of agricultural machinery surged by 10.0 per cent to $69.2 million in Jul-Apr FY2025, reflecting rising mechanization. For the Kharif season 2025, availability of Urea and DAP is estimated at 4,012 and 840,000 tonnes, respectively. Whereas their estimated offtake stands at 3,152 and 796,000 tonnes, which are 14.6 per cent and 24.0 per cent higher than last year, respectively. Large Scale Manufacturing (LSM) Sector Exhibits Uneven Recovery The LSM sector showed a mixed performance in March 2025. It registered year-on-year (YoY) growth of 1.8 per cent; however, this was offset by a month-on-month (MoM) contraction of 4.6 per cent. LSM declined by 1.5 per cent during Jul-Mar FY2025, compared to contraction of 0.2 per cent in the same period last year. Out of 22 sectors, 12 recorded positive growth, including Textile, Wearing Apparel, Coke & Petroleum Products, Beverages, and Pharmaceuticals. During Jul-Apr FY2025, the automobile sector posted robust growth, supported by increased production of cars (38.3 per cent), trucks and buses (95.8 per cent), and jeeps and pick-ups (80.0 per cent). Cement dispatches stood at 37.3 million tonnes during Jul-Apr FY2025, reflecting a slight decline of 0.3 per cent over the last year. Domestic sales dropped by 5.6 per cent to 29.9 million tonnes, while exports increased by 28.8 per cent to 7.4 million tonnes. INFLATION FALLS TO RECORD LOW LEVEL CPI inflation dropped to 0.3 per cent YoY in April 2025, down from 0.7 per cent in March and 17.3 per cent in April 2024. MoM, it declined by 0.8 per cent, following a 0.9 per cent increase in March and a -0.4 per cent decline in April 2024. Major contributing factors of YoY inflation include health (14.1 per cent), education (10.9 per cent), clothing and footwear (9.1 per cent), alcoholic beverages and tobacco (7.9 per cent), restaurants and hotels (6.3 per cent), and household equipment (4.0 per cent). Declines were recorded in perishable food items (-26.7 per cent), transport (-3.9 per cent), housing and utilities (-2.6 per cent), and non-perishable food items (-0.8 per cent). The Sensitive Price Indicator for the week ending May 22, 2025, decreased by 0.29 per cent, with 14 items showing a price decrease. FISCAL INDICATORS DEMONSTRATE ENHANCED MANAGEMENT DISCIPLINE During Jul-Mar FY2025, total revenue grew by 36.7 per cent to Rs13,367.0 billion, compared to Rs9,780.4 billion last year, led by a 68 per cent rise in non-tax revenues which reached Rs4,229.7 billion, mainly driven by SBP profits, petroleum levy, dividends, and surcharges. FBR tax collection also increased outflows of $290.0 million and $285.5 million, respectively. As of May 16, 2025, foreign exchange reserves stood at $16.6 billion, including $11.4 billion held by SBP. The MPC further Cuts the Policy Rate, Credit is Expanding, while PSX felt the geopolitical pressure The Monetary Policy Committee (MPC), on May 5, 2025, reduced the policy rate by 100 basis points to 11 per cent, observing a persistent decline in inflation. During July 1st—May 2nd, FY2025, broad money (M2) grew by 4.7 per cent, compared to 7.0 per cent in the same period last year. Net Foreign Assets increased to Rs1,210.5 billion (up from Rs590.0 billion), while Net Domestic Assets rose by Rs476.2 billion, significantly lower than the Rs1,588.3 billion recorded last year. Private sector credit expanded to Rs751.5 billion, higher than Rs239.9 billion in the corresponding period last year. In April 2025, the KSE-100 index remained under pressure amid geopolitical tensions with India, closing at 111,327 points after losing 6,480 points over the month which has been recovered in May 2025. Market capitalization declined by Rs853 billion and closed at Rs13,521 billion. In April 2025, the Bureau of Emigration and Overseas Employment registered 53,231 workers, a 9.0 per cent decrease from 58,555 in March. The Pakistan Poverty Alleviation Fund, in partnership with 24 organisations, disbursed 20,705 interest-free loans worth Rs960 million during the month. Since 2019, a total of 3.0 million loans amounting to Rs116.71 billion have been provided. During Jul-Mar FY2025, Rs409.4 billion was spent under the BISP, representing a 28.7 per cent increase compared to last year, against an allocation of Rs592.5 billion. To channel investments into environmentally-sustainable projects, the government has launched the first-ever Green Sukuk. This initiative indicates the country's efforts toward a green and resilient economy. Copyright Business Recorder, 2025
Al Bawaba
2 days ago
- Business
- Al Bawaba
Bank ABC secures upgrade from Fitch to investment grade rating BBB- reflecting continued strategic momentum
Bank ABC (Arab Banking Corporation B.S.C.), a leading international bank headquartered in the Kingdom of Bahrain, is extremely pleased to announce that Fitch Ratings has upgraded its Long-Term Issuer Default Rating (IDR) to 'BBB-' from 'BB+' and its Viability Rating (VR) to 'bbb-' from 'bb+', with the rating outlook as 'Stable.'Fitch has announced the rating upgrade, citing the Bank's strengthened risk profile, diversified international operations and a robust capital and liquidity position. It has also recognised Bank ABC's enhanced asset quality, prudent risk management and strategic rebalancing towards lower-risk cited the Bank's 'regional corporate franchise and wide geographical diversification' as key strengths, alongside 'well-managed market risks, adequate capitalisation, stable asset quality, funding and liquidity.' The agency also noted the improvement in the Bank's operating environment and resilience of its performance across core Fitch has reaffirmed that Bank ABC's rating is not constrained by the sovereign rating of its home market, underscoring the strength and independence of the Bank's international funding profile and offshore rating upgrade also marks the realignment of Bank ABC's ratings as investment grade across both major global agencies, with S&P also maintaining its 'BBB-' rating with Stable outlook. Commenting on the news, Sael Al Waary, Group Chief Executive Officer of Bank ABC, said: 'This upgrade is a major achievement for Bank ABC and a strong endorsement of the impact of our strategic execution and vision. It further reinforces Bank ABC's strengths, enhances access to a wider investor and funding base and reflects the competitive advantages of our international franchise. We remain committed to maintaining a strong, diversified balance sheet and creating long-term value for all our stakeholders.' © 2000 - 2025 Al Bawaba ( Signal PressWire is the world's largest independent Middle East PR distribution service.
Business Recorder
3 days ago
- Business
- Business Recorder
Fitch upgrades country's rating: Macroeconomic stabilisation acknowledged
ISLAMABAD: Pakistan's economy has been upgraded by Fitch Ratings, acknowledging macroeconomic stabilisation in the outgoing fiscal year, supported by improved fiscal performance, current account surplus and easing inflation, says Monthly Economic Update released by Finance Division on Thursday. Revenue growth outpaced expenditure, reducing the fiscal deficit and further strengthening the primary surplus. The current account posted a $1.9 billion surplus, with a robust growth in exports and remittances. Inflation declined to a record low, paving the way for a more accommodative monetary policy stance. While Large Scale Manufacturing (LSM) activity remained sluggish, the automobile and export-oriented sectors showed encouraging performance. Fitch upgrades Pakistan rating to 'B-' Climate finance initiatives, including the Resilient and Sustainable Facility from the IMF and launching the Green Sukuk, reinforce the path toward inclusive and sustainable growth. POLICY INTERVENTIONS SUPPORTING AGRICULTURE GROWTH During the Rabi season 2024-25, wheat was cultivated on 22.07 million acres with an estimated output of 28.98 million tonnes. Farm input utilisation showed consistent improvement, supported by government efforts to ensure quality seeds, adequate credit, and availability of the machinery and fertilisers. Agricultural credit disbursement increased by 15.0 per cent to Rs1,880.4 billion during Jul-Mar FY2025, moving steadily toward the annual target of Rs2,572.3 billion. Imports of agricultural machinery surged by 10.0 per cent to $69.2 million in Jul-Apr FY2025, reflecting rising mechanization. For the Kharif season 2025, availability of Urea and DAP is estimated at 4,012 and 840,000 tonnes, respectively. Whereas their estimated offtake stands at 3,152 and 796,000 tonnes, which are 14.6 per cent and 24.0 per cent higher than last year, respectively. Large Scale Manufacturing (LSM) Sector Exhibits Uneven Recovery The LSM sector showed a mixed performance in March 2025. It registered year-on-year (YoY) growth of 1.8 per cent; however, this was offset by a month-on-month (MoM) contraction of 4.6 per cent. LSM declined by 1.5 per cent during Jul-Mar FY2025, compared to contraction of 0.2 per cent in the same period last year. Out of 22 sectors, 12 recorded positive growth, including Textile, Wearing Apparel, Coke & Petroleum Products, Beverages, and Pharmaceuticals. During Jul-Apr FY2025, the automobile sector posted robust growth, supported by increased production of cars (38.3 per cent), trucks and buses (95.8 per cent), and jeeps and pick-ups (80.0 per cent). Cement dispatches stood at 37.3 million tonnes during Jul-Apr FY2025, reflecting a slight decline of 0.3 per cent over the last year. Domestic sales dropped by 5.6 per cent to 29.9 million tonnes, while exports increased by 28.8 per cent to 7.4 million tonnes. INFLATION FALLS TO RECORD LOW LEVEL CPI inflation dropped to 0.3 per cent YoY in April 2025, down from 0.7 per cent in March and 17.3 per cent in April 2024. MoM, it declined by 0.8 per cent, following a 0.9 per cent increase in March and a -0.4 per cent decline in April 2024. Major contributing factors of YoY inflation include health (14.1 per cent), education (10.9 per cent), clothing and footwear (9.1 per cent), alcoholic beverages and tobacco (7.9 per cent), restaurants and hotels (6.3 per cent), and household equipment (4.0 per cent). Declines were recorded in perishable food items (-26.7 per cent), transport (-3.9 per cent), housing and utilities (-2.6 per cent), and non-perishable food items (-0.8 per cent). The Sensitive Price Indicator for the week ending May 22, 2025, decreased by 0.29 per cent, with 14 items showing a price decrease. FISCAL INDICATORS DEMONSTRATE ENHANCED MANAGEMENT DISCIPLINE During Jul-Mar FY2025, total revenue grew by 36.7 per cent to Rs13,367.0 billion, compared to Rs9,780.4 billion last year, led by a 68 per cent rise in non-tax revenues which reached Rs4,229.7 billion, mainly driven by SBP profits, petroleum levy, dividends, and surcharges. FBR tax collection also increased outflows of $290.0 million and $285.5 million, respectively. As of May 16, 2025, foreign exchange reserves stood at $16.6 billion, including $11.4 billion held by SBP. The MPC further Cuts the Policy Rate, Credit is Expanding, while PSX felt the geopolitical pressure The Monetary Policy Committee (MPC), on May 5, 2025, reduced the policy rate by 100 basis points to 11 per cent, observing a persistent decline in inflation. During July 1st—May 2nd, FY2025, broad money (M2) grew by 4.7 per cent, compared to 7.0 per cent in the same period last year. Net Foreign Assets increased to Rs1,210.5 billion (up from Rs590.0 billion), while Net Domestic Assets rose by Rs476.2 billion, significantly lower than the Rs1,588.3 billion recorded last year. Private sector credit expanded to Rs751.5 billion, higher than Rs239.9 billion in the corresponding period last year. In April 2025, the KSE-100 index remained under pressure amid geopolitical tensions with India, closing at 111,327 points after losing 6,480 points over the month which has been recovered in May 2025. Market capitalization declined by Rs853 billion and closed at Rs13,521 billion. In April 2025, the Bureau of Emigration and Overseas Employment registered 53,231 workers, a 9.0 per cent decrease from 58,555 in March. The Pakistan Poverty Alleviation Fund, in partnership with 24 organisations, disbursed 20,705 interest-free loans worth Rs960 million during the month. Since 2019, a total of 3.0 million loans amounting to Rs116.71 billion have been provided. During Jul-Mar FY2025, Rs409.4 billion was spent under the BISP, representing a 28.7 per cent increase compared to last year, against an allocation of Rs592.5 billion. To channel investments into environmentally-sustainable projects, the government has launched the first-ever Green Sukuk. This initiative indicates the country's efforts toward a green and resilient economy. Copyright Business Recorder, 2025
South China Morning Post
3 days ago
- Business
- South China Morning Post
Hong Kong credit ratings reflect strength, support for city on financial front
For an economy that is supposed to be in the doldrums according to some pessimists, Hong Kong's performance has not been too shabby lately. The economy experienced robust growth in the first quarter of this year, with a 3.1 per cent rise in gross domestic product from the same period last year and an 8.7 per cent jump in exports. Early signs are that the city is successfully diversifying its exports to new markets across Southeast Asia and in the Middle East, to compensate for losses from trade with the United States because of the tariff war. Advertisement It should, therefore, come as no surprise that all three major credit ratings firms have reaffirmed the fiscal stability and resilience of the city's outlook. Moody's and S&P Global have maintained their 'Aa3' and 'AA+' credit ratings for Hong Kong, respectively their fourth highest and second highest. They came just days after Fitch Ratings said it was maintaining Hong Kong's 'AA-', its fourth highest. Indeed, Moody's upgraded the city's outlook from 'negative' to 'stable'. It is reassuring as the latest ratings come at a time of deep uncertainties about the world's economic and trade outlooks because of the on-again, off-again tariffs imposed by US President Donald Trump against friend and foe alike. All three ratings reflect the city's strong financial position, with its large fiscal buffers, low debt as well as solid funding and ample liquidity within the banking sector. It means Hong Kong has very low credit risk and a strong capacity to repay its debts. S&P has also noted the local government's flexible and effective policies while the US dollar-peg continues to support monetary and financial stability. While the city's deficit, revised down to HK$80.3 billion from HK$87.2 billion, worries some critics, most economists consider it quite manageable. Depending on several likely scenarios, the government's consolidated account – combining its operating and capital accounts – is expected to return either to a surplus or a deficit down to HK$59 billion in 2028-29. Throughout this period, the fiscal reserves are expected to remain at about HK$500 billion. Advertisement One reason for the lingering deficit is high capital works expenditure from megaprojects such as the Northern Metropolis in the northern New Territories. The local capital markets are being reanimated, especially with a thriving initial public offering (IPO) scene, which just saw this year's biggest debut with Chinese battery giant Contemporary Amperex Technology (CATL). That is expected to propel Hong Kong back to the top three ranking in IPO listings.
