Why is it in the news?
- Moody’s Investors Service has downgraded its outlook on India to ‘negative’ from ‘stable’.
More in the news
- Moody’s has left India’s current rating (Baa2) unchanged.
- It imply that the slowing economy has not yet affected India’s current rating, but could in the future.
- The Moody’s decision represents a downgrade in its expectations of the future performance of the economy.
- Moody’s decision to change the outlook to ‘negative’ reflects increasing risks that economic growth will remain materially lowe.
- It may leading to a gradual rise in the debt burden from already high levels.
- About Moody’s:
(1) Moody’s is a global rating agency.
(2) Moody’s Corporation is the holding company that owns:
(a) Moody’s Investor Services, which rates fixed income debt securities.
(b) Moody’s Analytics, which provides software and research for economic analysis and risk management.
- Moody’s assigns ratings on the basis of assessed risk and the borrower’s ability to make interest payments, and its ratings are closely watched by many investors.
Source
The Hindu.