Standard And Poor’s Rating For India to be Out Today; Will it Upgrade Like Moody’s?

Moody's had upgraded India's credit ratings after 14 years to Baa2 with a stable outlook last week. The revision had come after 2004. Moody's predicted a robust GDP growth.

Updated: November 24, 2017 9:11 AM IST

By India.com News Desk

Standard And Poor's Rating For India to be Out Today; Will it Upgrade Like Moody's?
Standard and Poor's

New Delhi, Nov 24: The ratings agency, Standard and Poor’s (S&P) will review India’s sovereign ratings on Friday. After another global agency, Moody’s, upgraded India’s ratings last week, expectations are that the Standard and Poor’s might also give a favourable outlook as to India’s economic position and upgrade the country’s credit ratings.

A senior finance ministry official told Financial Express that they were getting ready for both positive and negative outcomes. This is because the Standard and Poor’s had taken a negative observation as to India’s economic condition.

It had said that India had the lowest prosperity level among comparable economies, a reason it didn’t upgrade India’s ratings for more than a decade. (Also read: Moody’s Lauds Modi’s Policies, Upgrades India’s Credit Ratings)

“Of all investment-grade sovereigns, India displays by far the lowest level of prosperity. At about $2,000 per capita, its income level is a third lower than Morocco’s and the Philippines’,” had said.

The Standard and Poor’s had changed India’s ratings in January 2007 to BBB-. The rating was the lowest for bonds. It had also given out an outlook, which was stable at that time. In 2009, it change the outlook to be negative and changed it again to stable in 2010. It changed its outlook to negative and positive again, but India’s rating remained constant BBB-.

Moody’s had upgraded India’s credit ratings after 14 years to Baa2 with a stable outlook last week. The revision had come after 2004. Moody’s predicted a robust GDP growth.

“We expect GDP growth of around 7.6 per cent will result in higher sales volumes, which, along with new production capacities and benign commodity prices, will support pre-tax growth of 5-6 per cent over the next 12-18 months,” Kaustubh Chaubal, a vice-president and senior analyst at Moody’s had said in a report on the 2018 outlook for non-financial Indian corporates.

BJP President Amit Shah had said that the commendations from international agencies like Pew Research, World Bank and Moody’s was the result of the Modi government’s policies.

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