Moody’s Downgrades India’s Outlook to Negative

Moody’s, the global rating agency, has downgraded India’s outlook to negative as India hunts for a way out of the slowdown, hinting at a persisting negative shift. Ratings for foreign currency and local currency long-term issuer are still at Baa2, Ministry of Finance announced.

Crux of the Matter

1. Moody’s has downgraded India’s outlook to negative from the stable of Baa2.

2. Moody’s showed concerned regarding India’s tapering fiscal deficit, distressed rural demand, unemployment, and NBFC crisis.

3. ‘India continues to offer strong prospects of growth in near and medium term.’ responded Ministry of Finance citing the trust of IMF, which expects India to grow at 6.1% in 2019, and at 7% in 2020, the robust measures taken to cope with the slowdown, and tenacious low bond yields.

4. S&P Global Ratings and Fitch Ratings have kept unchanged India’s outlook to stable.

Curiopedia

Credit rating – A sovereign credit rating is the credit rating of a sovereign entity, such as a national government. The sovereign credit rating indicates the risk level of the investing environment of a country and is used by investors when looking to invest in particular jurisdictions, and also takes into account political risk. Results focus foremost on economics, specifically sovereign default risk or payment default risk for exporters. Read More

Curated Coverage

1. The Times of India – Moody’s lower India’s outlook to negative; govt says eco fundamentals remain quite robust.

2. Live Mint – Moody’s lowers India’s outlook to ‘negative’ from ‘stable’ on economic concern

3. Press Information Bureau – Finance Ministry responds to Moody’s change in outlook

#Business #Economy #India #World