Welcome Guest! Contact us +91-7979932964 Follow on:    Contact Us |  FAQs |  Free Register |  Login 
Advice » News» Fitch Downgrades India Credit Rating

Fitch Downgrades India Credit Rating

Jun 25 2012 | 0 Comments | 2424 Views

Fitch, a global credit rating agency, cut India’s sovereign credit rating from stable to negative barely two months after Standard & Poor’s (S&P) dealt a similar blow to our sovereign ratings and our national ego. Both the pronouncements cite risks that India’s growth outlook would worsen if ill-governance and policy paralysis continue as they have been in the last couple of years.  The agencies pegged India’s rating at BBB-, the lowest investment grade. Fitch estimated her government debt to be 66% of GDP, a lot higher than the median of 39% of other BBB- rated countries.

 Fitch has also revised the credit ratings of 19 entities in Indian economy that includes six public sector banks, two private sector banks and seven PSUs like NTPC, SAIL, IOC, NHPC etc because of their over-exposure to the sovereign. The banks believe that this rating revision would not impact their ability to borrow overseas funds as it did not affect their stock prices.


Leave a Comment



Latest News
Fitch Downgrades India Credit Rating

As Indian economy slows and currency depreciates, Fitch, a global credit rating agency cut India’s sovereign credit rating from stable to negative.

Read More
Latest News
Which Indian real estate stocks should you buy now

Prospect for real estate companies look grim; still there are opportunites for long run gain

Read More
Latest News
RBI opens the Credit Tap

The reduction of Cash Reserve Ratio (CRR) is expected to inject liquidity into a credit parched economy. This is expected to be the beginning of monetary easing.

Read More
Latest News
Property market outlook rosy for 2012

Commercial space market to cool; Property market outlook rosy for 2012; Rampant delay in project completion

Read More
Latest News
Bengaluru in top 10 in investment destination

Based on a study by PricewaterhouseCoopers (PwC), Bengaluru is the 10th best real estate investment destination for 2012 among the most favored real estate investment destinations in the Asia.

Read More