India's country rating vulnerable to further setbacks: Moody's
Expressing concern at the rapid deterioration of the fiscal situation in the country, global rating agency Moody's has said India's sovereign credit rating is vulnerable to further setbacks.
By PTI |
NEW DELHI: Expressing concern at the rapid deterioration of the fiscal situation in the country, global rating agency Moody's has said India's sovereign credit rating is vulnerable to further setbacks.
"The vast chasm between the stated intent of the Fiscal Responsibility and Budget Management (FRBM) Act and the actual fiscal outcomes leaves India's investment cycle, its growth prospects, and the sovereign credit rating vulnerable to further setbacks," Moody's Senior Analyst Aninda Mitra told PTI.
The rating agency, he had said earlier in February, would review the ratings after the Lok Sabha elections, taking into account the fiscal policy stance of the new government.
India's fiscal deficit continues to remain a sensitive area as far as risk perceptions about India's creditworthiness are concerned, Mitra said, adding that India's economic recovery is still "very incipient".
Viewed broadly, he said the recovery "could be a statistical bounceback and the overall economy remains subject to further credit risks and policy transmission risks."
As regards raising public expenditure to boost demand, Moody's said it was more of a populist measures than initiatives to counter the impact of economic slowdown.
"The vast chasm between the stated intent of the Fiscal Responsibility and Budget Management (FRBM) Act and the actual fiscal outcomes leaves India's investment cycle, its growth prospects, and the sovereign credit rating vulnerable to further setbacks," Moody's Senior Analyst Aninda Mitra told PTI.
The rating agency, he had said earlier in February, would review the ratings after the Lok Sabha elections, taking into account the fiscal policy stance of the new government.
India's fiscal deficit continues to remain a sensitive area as far as risk perceptions about India's creditworthiness are concerned, Mitra said, adding that India's economic recovery is still "very incipient".
Viewed broadly, he said the recovery "could be a statistical bounceback and the overall economy remains subject to further credit risks and policy transmission risks."
As regards raising public expenditure to boost demand, Moody's said it was more of a populist measures than initiatives to counter the impact of economic slowdown.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
