Moody’s cuts India’s outlook to ‘negative’

4,402

Moody’s Investors Service on Thursday cut India’s ratings outlook to “negative” from “stable”, citing increasing risks that growth in Asia’s third-largest economy will remain lower than in the past.

The ratings agency said its action partly reflected government and policy ineffectiveness in addressing economic weakness, which in turn led to an increase in debt burden from already high levels.

Moody’s retained its foreign and local currency ratings at ‘Baa2’.

The Nifty 50 index .NSEI fell 0.4% in early trade on Friday, while the rupee INR=D4 weakened to 71.31 against the dollar, versus Thursday’s close of 70.965.

“India continues to be among the fastest growing major economies in the world, India’s relative standing remains unaffected,” the finance ministry said in a response to the outlook cut, adding that the economy’s fundamentals remained “quite robust”.

The ratings agency said its action partly reflected government and policy ineffectiveness in addressing economic weakness, which in turn led to an increase in debt burden from already high levels.

Moody’s retained its foreign and local currency ratings at ‘Baa2’.

The Nifty 50 index .NSEI fell 0.4% in early trade on Friday, while the rupee INR=D4 weakened to 71.31 against the dollar, versus Thursday’s close of 70.965.

“India continues to be among the fastest growing major economies in the world, India’s relative standing remains unaffected,” the finance ministry said in a response to the outlook cut, adding that the economy’s fundamentals remained “quite robust”.


Get real time updates directly on you device, subscribe now.

Leave A Reply

Your email address will not be published.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. AcceptRead More