People familiar with the matter told Bloomberg that Indian finance ministry officials are planning to pitch to Moody’s Investors Service for a sovereign rating upgrade when it meets with the firm on September 28.
Finance officials plan to provide details about how India will meet its budget targets for the current fiscal year, which runs through March, the people said, asking not to be identified because the details are not public. Huh.
Moody’s Investor Services downgraded India’s sovereign rating to the lowest investment grade on June 1, 2020. The rating agency downgraded India’s rating from ‘BAA2’ to ‘BAA3’ and kept the outlook from ‘stable’ to ‘negative’. It cited policy challenges in addressing the protracted economic slowdown and its deteriorating fiscal position.
In May, S&P Global Ratings said it does not see any change in India’s sovereign rating for the next two years.
Global rating agency Moody’s on Thursday retained India’s sovereign rating at the lowest investment grade Baa3 with a negative outlook.
The rating agency, along with its peers, has been criticized by government agencies, who accuse them of being biased towards emerging market economies such as India, and intentionally assigning low credit ratings despite a better record.
Don’t miss a story! Stay connected and informed with Mint.
download
Our App Now!!
.