Sovereign credit ratings are a barometer of a country’s credit profile and regulatory climate. Moody’s downgraded China in May, followed by Standard and Poor’s (S&P) which also cut the Asian giant’s sovereign rating. But Moody’s warned that India’s rating could be downgraded if the management of government finances slipped. The other two key global rating agencies—Standard and Poor’s and Fitch Ratings—have assigned India the lowest investment grade rating with stable outlook. “Longer term, India’s growth potential is significantly higher than most other Baa-rated sovereigns.”

Source: Hindustan Times November 17, 2017 02:22 UTC