Fitch's India ratings to depend on full budget
Expressing "deeper concerns" over the structure of Indian government finances, global rating agency Fitch today said it will assess India's ratings in future on the basis of measures taken for strengthening public finances.
By PTI |
NEW DELHI: Expressing "deeper concerns" over the structure of Indian government finances, global rating agency Fitch today said it will assess India's ratings in future on the basis of measures taken for strengthening public finances.
The rating agency will look at the guidance on fiscal consolidation by the 13th Finance Commission and the full budget for 2009-10 to take any review of India's ratings.
"In the case of India, we have deeper concerns with respect to the structure of public finances and thus whether the current deterioration will be reversed when the economy begins to recover," Fitch Asia Pacific Sovereign Ratings head James McCormack told PTI.
He said the 13th Finance Commission should give us some guidance in this regard.
"From our perspective, it is imperative that measures are introduced to put public finances back on a sustainable path, leaving aside the effects of the economic downturn. It is on this basis that we will assess the rating going forward," McCormack said.
He said the outlook for the rating depends on two factors -- the budget of the next government and, more importantly, the recommendation of the 13th Finance Commission.
The rating agency will look at the guidance on fiscal consolidation by the 13th Finance Commission and the full budget for 2009-10 to take any review of India's ratings.
"In the case of India, we have deeper concerns with respect to the structure of public finances and thus whether the current deterioration will be reversed when the economy begins to recover," Fitch Asia Pacific Sovereign Ratings head James McCormack told PTI.
He said the 13th Finance Commission should give us some guidance in this regard.
"From our perspective, it is imperative that measures are introduced to put public finances back on a sustainable path, leaving aside the effects of the economic downturn. It is on this basis that we will assess the rating going forward," McCormack said.
He said the outlook for the rating depends on two factors -- the budget of the next government and, more importantly, the recommendation of the 13th Finance Commission.
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