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India's rating outlook stable: Moody's

Discussion in 'World Affairs' started by jbond197, Jun 25, 2012.

  1. jbond197

    jbond197 SENIOR MEMBER

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    India's rating outlook stable: Moody's

    NEW DELHI: Global agency Moody's today retained outlook on India's rating at stable despite slowdown in GDP growth rate saying that it is unlikely to be even a medium-term feature.

    Moody's Investors Service in a statement said, "It is maintaining its stable outlook on India's rating as various credit challenges -- such as weak fiscal performance, tendency towards inflation and an uncertain investment policy environment -- have characterised the Indian economy for decades, and are already incorporated into the current Baa3 rating".

    On the other hand, it said that certain recent negative trends -- such as lower growth, slowing investment and poor business sentiment -- are "unlikely to become permanent or even medium-term features of the Indian economy".


    Although, Moody's expects that global and domestic factors, including potential shocks in agriculture, could keep India's growth below trend for the next few quarters.

    India's GDP growth rate slowed to 6.5 per cent in 2011-12 against 8.4 per cent in the previous two financial years. The government expects the economic growth in the current fiscal at around 7.6 per cent.

    Moody's retaining India's outlook comes against the backdrop of two other leading agencies - Standard and Poor's and Fitch lowering the credit rating outlook to negative.

    On the rupee's sharp depreciation in the recent months, Moody's said it does not raise the government's own debt service burden significantly. The BSE 30-scrip index Sensex was trading higher by 130.54 points at 17,103.05 at 10.40am.
     
  2. Rajaraja Chola

    Rajaraja Chola BANNED

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    Now which to believe?
    Moody or Fitch or S&P or JP?
    Everyone has different agendas with different measuring methodologies
     
  3. StingRoy

    StingRoy SENIOR MEMBER

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    If you are Chinese or a Pakistani you would believe in S&P, If you are Indian, then you would believe Moody's, If you are an external investor/FII you would believe in your own market research.

    But the common man in India is yet to feel the effect of the slowdown apart from the ground level inflation.
     
  4. ManuZ

    ManuZ FULL MEMBER

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    Does any one with logical thinking believe in these rating agencies?
    Well these rating agencies were proved disaster in the 2008 crisis...Anybdy remember?
    Lot of them rated Lehman Brother AAA and AAA- weeks before Lehman announced bankruptcy...
     
  5. Holmes

    Holmes FULL MEMBER

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    To put it simply, only India is having a good economic growth in this recession and the crediting agencies that gave a negative outlook is nothing but jealousy. :blah:
    We know India can pull out of this recession easily. :tup:
     
  6. shuttler

    shuttler ELITE MEMBER

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    if credit rating agencies do not downgrade a problematic entity and you invest in in it is the agencies' problem for your relying on them

    if the credit rating agencies downgrade an entity and you still invest in it, it is your problem when the entity goes broke
     
  7. Rajaraja Chola

    Rajaraja Chola BANNED

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    You r true... before 2008 nobody took them seriously...Now after recession suddenly everyone takes them seriously, which is the biggest comedy......
     
  8. shuttler

    shuttler ELITE MEMBER

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    this word is becoming a joke on india
     
  9. timetravel

    timetravel SENIOR MEMBER

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    did u miss the fun on china due to its fake economy/data :lol: