Moody’s lowers India rating citing low growth prospects

02 Juin, 2020, 09:26 | Auteur: Auguste Feret
  • India's central bank said it expects the economy will contract

Moody's also lowered India's long-term foreign-currency bond and bank deposit ceilings to Baa2 and Baa3, from Baa1 and Baa2, respectively.

Moody's maintained a negative outlook for the new sovereign rating, citing worsening government finances as the coronavirus continues to hurt the economy. This means, India is just one notch above the non-investment grade or junk grade.

Modi's government has announced a number of steps to help the poor and small businesses weather the pandemic, but Moody's said it does not expect the measures to push India's growth rate back towards the 8% that had recently seemed within reach.

India's GDP growth slipped to an 11-year low of 4.2 per cent in 2019-20, while the fiscal deficit expanded to 4.6 per cent of the GDP as against the revised estimate of 3.8 per cent of GDP in the previous financial year.

Manufacturing PMI contracts sharply in May amid lockdown
Also, dearth of labour and raw material remained widespread, while supply chains could not be established, said industry bodies. Despite industrial activity partially resuming after April 20, manufacturing activity could not kick in fully.

The Sun Just Spat Out Its Biggest Flare Since 2017
NASA officials have said that the larger flare could be an indication that the solar cycle is becoming more active. They are associated with solar flares-sudden explosions caused by changes to these magnetic fields .

Opec, Russia discuss extending oil cuts for 1-2 months
United States crude CLc1 dipped $0.27, or 0.8%, at $35.22 a barrel. OPEC , Russia discussing to roll over curbs by one to two months.

Moody's Investors Service said stress among Indian lenders may be "deeper and broader" than it thought, adding more risks to the already battered economy.

The ratings agency has noted that its upgrade of India to Baa2 in November 2017 was "based on the expectation that effective implementation of key reforms would strengthen the sovereign's credit profile through a gradual but persistent improvement in economic, institutional and fiscal strength".

"India faces a prolonged period of slower growth relative to the country's potential, rising debt, further weakening of debt affordability and persistent stress in parts of the financial system, all of which the country's policymaking institutions will be challenged to mitigate and contain", it said. However, implementation of these reforms since then has been "relatively weak" and has not resulted in material credit improvements, indicating limited policy effectiveness, it said. Moody's does not expect the credit crunch in India's undercapitalised financial sector to be resolved quickly.

Together with the immediate coronavirus-related policy support, the government has announced a series of reforms aimed at enhancing productivity, investment, employment and the ease of doing business across a variety of sectors including agriculture, mining, defence and power.

Conseillé:



Populaire

Vijay Singh opts out of Korn Ferry Tour start after criticism
Korn Ferry Tour golfer Brady Schnell called out Singh in a series of Tweets, which he later deleted, and didn't hold back. Singh, who owns a total of 34 PGA Tour titles, has missed eight of nine Tour cuts in the past two seasons.

COVID-19 patients who undergo surgery at increased risk of postoperative death
According to the study, the mortality rates were higher in men versus women, and in patients aged 70 years or over versus those aged under 70 years.

PS5 Games Reveal Event Postponed by Sony
It's one of many brand-issued statements that have voiced support for equality in a general sense without pledging tangible action.

Another health crisis: Ebola outbreak confirmed in the Congo
Fighting throughout the African country and mistrust of medical workers have impeded attempts to curb outbreaks in the past. The death rate is typically high, ranging up to 90 percent in some outbreaks, according to the WHO.

George Floyd: medical examiner says death was a homicide
Aleccia Wilson, Director at Autopsy and Forensic Sciences at the University of MI , said she had examined Floyd's body. More than 40 cities have imposed curfews in addition to Minneapolis, including Los Angeles, New York and Washington.

COVID-19-infected Belgian Prince sorry for lockdown party
A Belgian prince has apologised for attending a party in Spain after contracting coronavirus . Prince Joachim , on the other hand, got up to no good in Spain and is now paying the price.

Music composer Wajid Khan dies due to coronavirus, kidney ailments
They came to meet me and took me out for sehri . "Both Sajid and Wajid have been close and true friends". Gone too soon. "We will miss you Wajid bhai thank you for the music", he wrote. "Damn it Wajid.

NASA astronauts describe their historic SpaceX ride to International Space Station
It was the first time a privately built and owned spacecraft carried astronauts to the orbiting lab in its almost 20 years. The aim of the mission is to demonstrate SpaceX's ability to ferry astronauts to the space station and back safely.

Taylor Swift's Trump Takedown Is Her Most Popular Tweet Ever
Also the Facebook CEO said he had been "struggling all day" with how to respond because Twitter did take down Trump's post. During the protests, crowds cheered as the Minneapolis Police Department's 3rd Precinct was burned to the ground.

North American stocks slip, oil falls as US-China tensions escalate
The broad-based S&P 500 added 0.2 per cent at 3,051.69 while the tech-rich Nasdaq Composite Index gained 0.5 per cent to 9,534.87. The results from two surveys of purchasing managers at USA manufacturers will be disclosed at 9:45 a.m.