Sustainable growth rate

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Sustainable growth rate

Maximum rate of growth a firm can sustain without increasing financial leverage.

Sustainable Growth Rate

The amount that a company or economy can grow without having to increase borrowing. A sustainable growth rate is desirable because it satisfies the needs of the company or economy without increasing its fixed costs (in this case, borrowing costs), which can create significant problems if the growth slows or begins to decline.
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With Outlook Stable, the upgrade of the IDRs reflects the following key rating drivers: Strong and consistent macroeconomic performance has continued, underpinned by sound policies that are supporting high and sustainable growth rates.
The other building block of sustainable growth rates is Britain's productivity - the amount of output produced for every hour worked.
Last Monday, Fitch raised the Philippines' credit rating to 'BBB' from 'BBB-' with a 'stable' outlook, citing that 'strong and consistent macroeconomic performance has continued, underpinned by sound policies that are supporting high and sustainable growth rates.
In a statement, Fitch said the Philippines' "strong and consistent macroeconomic performance has continued, underpinned by sound policies that are supporting high and sustainable growth rates.
The fiscal watchdog said that it believes the most effective way of achieving sustainable growth rates and protect against risks, or at least mitigate their possible impact, is to continue immediately with reforms that "improve the economy's competitiveness and the containment of public spending which will reduce the likelihood of fiscal derailment that would threaten economic stability".
Asked when India could achieve 9 per cent GDP growth, he said it is difficult to predict sustainable growth rates.
This should be lowered to 2 percent, allowing for a more balanced economic policy mix, with the emphasis on reducing taxation, encouraging private investment and contributing to sustainable growth rates.
It added that the comfortable liquidity with no exposure to the ECB emergency liquidity or other ECB monetary operations create the conditions for the support of the Cypriot economic activity in the great effort to restore the economy to sustainable growth rates.
Al-Rashed added that the strength and durability of the financial position of the bank is the solidity and the quality of its assets and diversity, which contributed to the achievement of steady and sustainable growth rates that reflect the Bank's commitment to the strategies adopted by the board of directors, which responds to the aspirations of the Bank's shareholders and enhancing the return on their investment.
A slowdown in China, towards more sustainable growth rates, will see GDP growth drop from a 7.
Imbalances built up over more than a decade and it will require continued policy action to ensure that Europe returns to stronger but sustainable growth rates and steadily reduces unemployment.
He said: "We continued to focus on creating shareholder value by maintaining sustainable growth rates of oil production.

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