Home' Trinidad and Tobago Guardian : January 19th 2017 Contents JANUARY 19 • 2017 guardian.co.tt BUSINESS GUARDIAN
INTERNATIONAL | BG23
Report: India no longer the
world's fastest-growing economy
The International Monetary Fund said Monday
that India's economy has fallen back behind its
northern neighbour China. India is estimated to
have grown at 6.6 per cent in 2016 compared with
China's 6.7 per cent, according to the IMF's World
The IMF has lowered its forecasts for India in the
current fiscal year by one percentage point, most-
ly because of "temporary negative consumption
shock" from the country's decision to ban its two
largest rupee notes about two months ago.
That decision, announced by Prime Minister
Narendra Modi on November 8, was touted as a
way to combat corruption and tax evasion. But it
also removed 86 per cent of the cash in a largely
cash-dependent economy, bringing many parts of it
to a grinding halt.According to government figures,
India grew at 7.3 per cent in the quarter that ended
in September, before the cash ban. It has now low-
ered its growth forecasts for the ongoing fiscal year.
Analysts predict the slowdown will be even great-
er, an assessment the IMF evidently agrees with.
But it also anticipates an eventual Indian recovery,
forecasting that the economy will return to 7.2 per
cent growth in 2017 and 7.7 per cent in 2018.
warns on debt
The International Monetary Fund on Monday raised
its growth forecast for China but warned rising debt
that has prompted concern about the country's fi-
nances increase the risk of a sharper slowdown.
The world's second-largest economy should expand
by 6.5 per cent this year, the IMF said in a report. That
is up by 0.3 percentage points from the agency's last
forecast in October.
However, that growth is supported by heavy gov-
ernment spending and rapid expansion of credit,
which "raises the risk of a sharper slowdown," the
The report adds to mounting warnings about the
economic drag of debt that has soared since the 2008
global crisis as Beijing used infusions of credit to shore
China's growth held steady at 6.7 per cent in the
three months ending in September, supported by
government spending and a boom in real estate sales
and bank lending. Private sector forecasters expect
that to decline as regulators tighten controls to cool
surging credit and housing prices, which they see as
a financial risk.
Communist leaders are trying to nurture more sus-
tainable growth based on consumer spending instead
of trade and investment but have repeatedly pumped
credit into the economy to avert an abrupt downturn
and politically dangerous job losses.
China's total debt has risen to the equivalent of
250 per cent of gross domestic product, high for a
developing economy. That has prompted warnings
of a possible financial crisis or a drag on growth.
"Continued reliance on policy stimulus measures,
with rapid expansion of credit and slow progress in
addressing corporate debt, especially in hardening
the budget constraints of state-owned enterprises,
raises the risk of a sharper slowdown or a disruptive
adjustment," the IMF said.
The agency said official Chinese stimulus might lead
to even stronger performance than forecast, which
might help boost growth for the country's trading
partners. But it warned that might be disrupted if
governments resort to "protectionist trade policies."
The world's second-largest
economy should expand
by 6.5 per cent this year;
up 0.3 percentage points from
the agency's last forecast
CORPORATE CREDIT RATING OF
NATIONAL HELICOPTER SERVICES LIMITED
Mr. Wayne Dass (right) presents the A- Certifcation to the Chairman of National Helicopter Services Ltd.,
Capt. Marc Dasent (centre) and the General Manager, Mr. Joshey Mahabir (left).
We are very proud to announce that the Caribbean
Info rmation and Credit Rating Services Limited (CariCRIS)
has reaffrmed the Corporate Credit ratings of CariA- (Foreign
and Local Currency) on the regional rating scale and
ttA- on the Trinidad and Tobago (T&T) national scale of
National Helicopter Services Limited (NHSL), with a negative
outlook. These ratings include a single notch up for likely
support from its majority shareholder, the Government of
the Republic of Trinidad and Tobago (GORTT).
Mr. Wayne Dass, Chief Executive Offcer of CariCRIS said
that the public rating of NHSL continues to represent an
important step in improving the accountability and
transparency of operations in the state enterprise sector.
He congratulated the Government and the Board and
Executive of NHSL on this initiative.
The ratings reaffrmation is supported by NHSL’s good
market position as evidenced by contracts with most of
its offshore oil and gas operators, and its favourable
geographic location. The Company’s proftable operations
since FY2010, with comfortable leverage, debt protection
and liquidity ratios along with strong revenue growth
potential for FY2017, also support the ratings.
The negative outlook is based on the expectation that
NHSL’s revenue will continue to face challenges over the
next twelve (12) months as there is expected to be
a continued reduction in the demand for helicopter
t r a n s p o rtation services from NHSL’s existing energy-sector
clients, as well as increased competition in the helicopter
Further constraining the ratings are the prevailing low oil
price which continues to put pressure on NHSL to reduce
its contract prices and the challenge to retain staff based
on the competitive packages that the private sector can
The A- Corporate Credit Rating indicates that the level of
creditworthiness of this obligor, adjudged in relation to other
obligors in the Caribbean and within T&T is good.
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