Companies & Sectors
S&P downgrades ArcelorMittal on weak global cues

The ratings agency said the downgrade reflects weaker steel industry environment and economic prospects globally, and particularly in Europe, which has led to downward revision of ArcelorMittal's profits

 
Mumbai: On the back of the weak European economic environment coupled with sluggish steel demand globally, rating agency Standard & Poor's (S&P) on Friday downgraded the long-and short-term ratings of ArcelorMittal, reports PTI.
 
"We are lowering the long-and short-term ratings on ArcelorMittal to 'BB+/B' from 'BBB-/A-3'," the agency said, adding the outlook is negative on the back of prevailing environment.
 
It also said the downgrade reflects the weaker steel industry environment and economic prospects globally, and particularly in Europe, which has led to downward revision of ArcelorMittal's profits for the rest of 2012 and 2013.
 
According to the report, purchasing manager indices have weakened, which is likely to translate into lower steel demand in 2012-13.
 
"Furthermore, the 20% decline in steel and raw material prices over the past two months indicates that the industry environment is currently weaker than we previously expected," it said.
 
The rating agency, however, said the world's largest steel company's business risk profile remained satisfactory and financial risk profile as 'significant' as it met the criteria of S&P.
 
ArcelorMittal generated 20% of its operating profit in Europe in 2011, 17% in North America, 33% from emerging markets. Referring to liquidity situation in the company, S&P said it is satisfactory.
 
"We continue to assess ArcelorMittal's liquidity as 'adequate' under our criteria. We estimate that the ratio of sources of liquidity to uses is above 1.2x for the next 12 months," it said.
 
The rating agency also said that group's bonds and key bank facilities don't contain rating triggers. Earlier, another rating agency Fitch has said despite a slowdown in growth of steel demand, outlook for the Fitch-rated domestic steel producers will remain stable in the second half of the current financial year.
 
As per the rating agency, demand for steel in the country is likely to be in the range of 6-7% in 2012, with the higher activity during post-monsoon period.
 

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New India Assurance to pay Rs11.23 lakh for denying claim ‘deliberately’

Despite providing all the relevant documents, including copies of the FIR and the untraceable report, the insurance company had rejected the claim

 
New Delhi: New India Assurance Company has been directed by a consumer forum to pay Rs9.73 lakh to one of its policy holders as reimbursement for theft of his truck and to pay him Rs1.5 lakh as compensation for rejecting his claim on “imaginary speculations,” reports PTI.
 
While asking the insurance firm to pay Rs11.23 lakh to complainant Gaurav Gupta, the New Delhi District Consumer Disputes Redressal Forum said his claim had been denied by the company ‘deliberately’ to harass him.
 
“Opposite party (New India Assurance) has deliberately and arbitrarily denied the claim which is totally in violation of law of justice and was to harass the consumer and to deprive him of his hard earned money duly financed by the financier.
 
“Opposite party is directed to pay Rs9,73,750. We also award Rs1,50,000 as compensation for harassment and cost of litigation, in which Rs50,000 should be deducted from the salary of claim manager who deliberately repudiated the claim without any evidence of record except imaginary speculation,” said the bench presided by CK Chaturvedi.
 
In his complaint, Najafgarh resident Mr Gupta had submitted that his Tata truck insured with the company for the period from 16 May 2006 to 15 May 2007 was stolen on the 19-20 July 2006 night and he had lodged the FIR on 25 July 2006.
 
He had said that despite providing all the relevant documents, including copies of the FIR and the untraceable report, the company had rejected his claim.
 
New India Assurance, in its written statement, had contended that it had rejected the claim as the FIR was lodged seven days after the theft.
 
The forum, however, rejected the insurance company’s contention saying, “the surveyor has noted that police was informed immediately.”
 

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COMMENTS

suvarnamk

4 years ago

depends-yes; if supplementary to std mediclaim
but, approach of non life & life insurance is different mind set
LI have less claim experience.
with rise in claims ,the premium will change
imp is disclosures by insurance seeker; tight underwriting & positive approach of the insurers as & when the need -claim arises
policy must be scrutinized by the regulator , citizen can not be taken for a ride

Power favours: Modi receives praises from WSJ but no visa from the US

While writing about India's recent power crisis, the WSJ has profusely praised Gujarat's chief minister’s actions on the state’s electricity situation. However Narendra Modi is shunned by the US state department and still cannot get visa from the US

 
Your true colours emerge only in crisis, they say. The recent power crisis across North and East states in India has drawn lot of criticism from domestic as well as international experts and press. Wall Street Journal (WSJ), in an article, criticised Prime Minister Manmohan Singh and his ways in the past to deal with power shortage.
 
It says: "If the past few months are any guide, Manmohan Singh will respond by ordering more coal to be shovelled into power plants for generation. The Prime Minister believes the problem is a shortage of coal for thermal plants, which provide the bulk of supply."
 
However, tucked away at the end of the blog are startling comments. Speaking about India's power situation, suddenly the article shower praises on Bihar's chief minister (CM) Nitish Kumar and Gujarat CM Narendra Modi. For Nitish Kumar, it says, "Bihar, previously a byword for poverty but now on its way up under the leadership of Nitish Kumar, last week moved to privatize power distribution in its biggest city."
 
The Journal was even more profuse in its praise for Narendra Modi. “But perhaps the greatest display of political gumption and policy creativity comes from Gujarat in the west. Chief Minister Narendra Modi's first victory was curbing the theft of power, one reason for transmission and distribution losses.” As Wall Street Journal noted, “Mr. Modi's real innovation, however, has been to set up a parallel distribution network to sell farmers electricity at competitive prices. Consumers can still access the old grid at subsidized prices, but they're increasingly turning to the new one for stable supply.”
 
According to the paper “Now Gujarat is the only Indian state that generates more power than it consumes. Consumer choice helps wean people off a de facto entitlement so that subsidized electricity can be phased out.” The Journal laments that while not all Chief Ministers will be as bold as Mr. Modi, but believes that India's states are the new laboratories for reform.
 
The paper says leaders like Narendra Modi offer a silver lining to the dark economic scenario. “The biggest lesson from the great blackout is that Delhi's failures don't necessarily doom the economy. Mr. Singh's fecklessness may deprive India of power today, but federalism gives the likes of Mr. Modi the ability to take initiative. For India to overcome its slump, the states need all the power they can get.”
 
It is indeed ironic that Wall Street Journal, as mainstream American establishment as one can get is profusely praising Modi. After all, the US state department has a policy of not allowing Narendra Modi to enter the US. In 2005 Narendra Modi was denied diplomatic visa to the US. In addition to this visa denial, his already granted B-1/B-2 visa was also revoked, under a section of the Immigration and Nationality Act, which makes any foreign government official who was responsible or "directly carried out, at any time, particularly severe violations of religious freedom" ineligible for the visa.
 
The Gujarat CM was also featured on the covers of the Time magazine. But even it did not change the stand of the US. In April, a spokesperson for the state department said, “The US position on the visa issue has not changed at all. If we do respond, it will be along familiar lines”.
 
It remains to be seen whether the US political and officialdom continue to shun Modi as he takes the centre stage in Indian politics.

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COMMENTS

Modiusvisa

3 years ago

We have launched a petition to request President Obama to reconsider US Administration’s stand on Mr. Narendra Modi, the Chief Minister of the State of Gujarat, India.

Please visit http://www.modi360.com to review and sign this petition.

Parag Mehta

4 years ago

As said by me in previous comment, the kind of response (negative or positive), he (Narendra Modi) evokes, people who may not know him also become aware of him.
For the rest, rather than verbally or visually (media ads in Gujarati channels) countering him, by doing concrete things to counter him would make sense. Other wise him winning subsequent elections is a foregone conclusion

Rajkumar Singh

4 years ago

The comments should not be entertained in any other language than the English.

amal

4 years ago

modi gujarat ma rahi ne bhagala padava nu j karyu chee ane modi ne bhajap mathi hatavo nahi to loko ne ladavase

amal

4 years ago

modi sarkar ne faravu ane khavi ane udadavu vadhare game che pan garibo ne kasu nahi modi ne hatavo ...

amal

4 years ago

moodi na raj ma modi e kasu karyu nathi ane emana pad par thi hati javu joie nahi to vadhu moghavari thase

amal

4 years ago

modi sarakaar kasu kaam ni nathi ane garibo ne kasu aapati nathi ane vija mate rupiya bagadva ma aave che

amal

4 years ago

modi sarakare garibo nu kasu karyu nathi ane vija mate rupiya bagadi ne kota kaam kare che

REPLY

anantha

In Reply to amal 4 years ago

mr. amal, why don't you please write in english or at least in hindi so that peope c
can appreciate your views.thanks.

amal

4 years ago

modi sarakare garibo ne kasu karyu anthi aene vija kya thi male pela garibo pachi vija

prakash C Sheth

4 years ago

Prakash C Sheth--The World is WIDE OPEN for attracting Investments and also Push INDIA's EXPORTS by State of GUJARAT provided the cost-benefit work to the mutual advantages. INDIA and States incl. Gujarat must AIM for higher Investments and accretion to INDIA's Wealth, higher value additions and Job growth while negotiating deals, Shun all Trade imports that creates TRADE Imbalances, incl. CHINESE trade, reject 51 % ownership by foreign interests especially the ones that CONNIVE to run Chinese factories full throttle while choking INDIA's industrial and trade growth.INDIA's consumption story should be discouraged if it swells INDIA's trade imbalance. Whether USA's denying VISA to sh. NAMO is tantamount to ' Sanction'or asemblance of it should be debated.Regards

Dahyabhai S Patel

4 years ago

Though Modi has made power theft under control and reforms in power distribution, do you know the cost of power in Gujarat? Probably it is among one of the hofhest!!!!!

I doubt if surplus power in Gujarat is due to Modi's efforts!!!!

Parag Mehta

4 years ago

The more it is said about him positive or negative, more the popular he becomes. He should in fact be a study case for advertisement agencies.
He is least bothered about what is said and written about him. He goes on delivering the results, which is his utmost priority.

Hemant

4 years ago

It seems everyone else except Mr.Modi is worried abt US Visa.He is not showing any worry,then why should one think on these lines.He is doing much better & have ways & means to reach US business community,if at all he needs.

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