Moody’s vision on India: Moody’s Investors Service has revised the forecast on India’s ratings to ‘negative’ from ‘stable’, assuming there was growing risks that business growth will remain substantially lower than the past.
It declared the Baa2 foreign currency and local-currency long-term issuer ratings for India.
“Moody’s decision to change the scope to negative returns increasing risks that economic increase will continue materially lower than in the past,
partly showing lower power and policy effectiveness at addressing long-standing economic and institutional deficiencies than Moody’s had before estimated, leading to a continuous rise in the debt load from already high levels,” the rating agency announced in a report.
Moody’s vision on India: While government agencies to support the market should help to reduce the depth and span of India’s growth slowdown, continued financial stress between rural households,
weak job creation, and, more recently, a credit crunch among non-bank financial institutions (NBFIs), have raised the possibility of a more entrenched slowdown, it stated.
“Moreover, the prospects of further changes that would encourage business finance and growth at high levels, significantly broaden the small tax base, have diminished,” it replied.