S & P, international Rating Agency, Says India‘s Economic Outlook Is Stable But Maintains Its Existing Rating Rate

December 1st, 2017 | by eBangla Bureau
S & P, international Rating Agency, Says India‘s Economic Outlook Is Stable But Maintains Its Existing Rating Rate
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AFTER International Monetary Fund, World Bank and Moody’s Investor Service, international rating agency Standard and poor’s   International Financial Service Limited ,has given thumps to the economic policy being followed by NDA Government headed by Narendra Modi. Standard & Poor’s  has retained its sovereign rating for India at BBB- with a stable outlook, dashing hopes of another upgrade after rival Moody’s last week lifted its rating by a notch after a gap of nearly 14 years. Reacting to the reports which will help India retain its image as the investment destination and strengthen its position to borrow from international market, Railway Minister Piyush Goyal, a Chartered Accountant (CA) turned politico, says it is “we hail “report. It has endorsed the Government’s reforms agenda. “Moody’s have probably viewed measures like bank recapitalisation more favourably. . Perhaps S&P did not do the same. So there may be a difference in terms of judgement.” S&P last raised India credit ratings to investment grade, BBB with a stable outlook, from BB+ in January 2007. BBB Rating means the country concerned has adequate capacity to meet its financial commitments. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitments. Goyal said Investment grade is the fundamental rating, so we are not disappointed, but the hope will be that S&P will take an overall view and on all the factors where the story may be much clearer next year, even on fiscal side, growth story… perhaps S&P will next time  take an overall view and on all the factors where the story may be much clearer next year, even on fiscal side, growth story… perhaps S&P will also be able to take a more favourable view,” said economic affairs secretary S C Garg. “We are not disappointed but our expectation would be that S&P also takes into account what the government has done to reform and perform”. he added. S&P differs from Moody’s, holds India rating at lowest investment grade.S&P has taken into account fiscal deficit, high general government debt and low per capita income for holding its India rating at BBB- with a stable outlooks. The Narendra Modi government was expecting an upgrade following one by Moody’s Investors Service last week. Moody’s raised India’s sovereign rating from the lowest investment grade of Baa3 to Baa2, and changed the outlook from stable to positive, expecting that the government’s continued focus on economic and institutional reforms will, over time, enhance India’s high growth potential.S&P said in a statement stable rating outlook reflects its view that over the next two years, India’s growth will remain strong, it will maintain its sound external account position and fiscal deficits will remain broadly in line with expectations. S&P last upgraded India’s sovereign rating to BBB– from BB+ in January 2007. The division of 177- year- old  S&P Global located at Manhattan, does DNA of Financial markets and economic policies across the world and publishes financial research and analysis on stocks, bonds and commodities. S&P is known for its stock market indices such as the U.S.-based S&P 500, the Canadian S&P/TSX, and the Australian S&P/ASX 200. S&P is considered one of the Big Three credit-rating agencies along with Moody’s Investors Service and Fitch Ratings.

 

 

 

 

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