Fitch rates India 'BBB-'

Why is it in the news?
  • The Global rating firm Fitch retained its sovereign rating for the country at ‘BBB-’, the lowest investment grade with a stable outlook.
  • As per Fitch report, a weak fiscal position continues to constrain the ratings and there were significant risks to macroeconomic outlook.
  • Fitch had last upgraded India’s sovereign rating from ‘BB+’ to ‘BBB-’ with a stable outlook over 12 years ago on August 1, 2006.
More in the news
  • Report Findings :
    1. Fitch listed the IL&FS defaults and the rising bad loans as risks.
    2. A weak fiscal position continues to constrain India’s sovereign ratings.
    3. Government debt at close to 70% of GDP.
    4. A difficulty to meet deficit target of 3.3% of GDP in the current financial year (2018-19) due to lower revenues including from GST in first half.
 
Fitch Ratings
  • Fitch Ratings Inc. is one of the "Big Three credit rating agencies", the other two being Moody's and Standard & Poor's.
  • Fitch Group is a global leader in financial information services with operations in more than 30 countries.
  • Fitch Ratings is a leading provider of credit ratings, commentary and research.
  • Fitch Ratings offers global perspectives shaped by strong local market experience and credit market expertise.
  • The Fitch ratings system is as follows:
  • Investment grade
  1. AAA: companies of exceptionally high quality (established, with consistent cash flows)
  2. AA: still high quality; slightly more risk than AAA
  3. A: low default risk; slightly more vulnerable to business or economic factors
  4. BBB: low expectation of default; business or economic factors could adversely affect the company
Source
The Hindu, Fitch.



Posted by Jawwad Kazi on 16th Nov 2018
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