The downgrade of India's sovereign rating by Moody's has not come as a surpris
The downgrade of India’s sovereign rating by Moody’s has not come as a surprise as global rating agencies have lowered ratings and outlook of about 21 emerging economies following COVID-19 outbreak, SBI said in a report on Tuesday.
India’s sovereign rating was downgraded by Moody’s to Baa3 with a negative outlook on the pretext of prolonged period of slower growth, rising debt and stress in financial system.
Apart from sovereign rating downgrade, Moody’s has taken rating actions on 11 Indian banks.
“…It seems that the downgrade was not completely unexpected. This is clearly visible in the data that market is not yet impacted by the rating downgrade. BSE Sensex and NSE Nifty rose and even Rupee appreciated against the US Dollar.
“…India has not been alone to witness rating downgrade. So far around 21 emerging and developing countries have registered either a rating and/ or outlook downgrade by the agency. This does not come as a total surprise as emerging markets are always more susceptible to…