Moody the Global Credit rating agency has given some reason to cheer to the Government of India. India sovereign rating has been reaffirmed by Moody at a time when most European Countries Sovereign Rating is under threat for down wards rating. Now it has upgraded the rating of Local currency Bond and made it at par with Indian Government foreign currency Loan. But we should not be so happy as even after the rating upgrade Indian Bonds rating is in the Bottom of the Rating table .Now the Local currency Bond will be investment Grade (Baa3) from the earlier speculative grade and is a good news when Indian currency has depreciated around 20% in 2011 becoming the worst currency against USD in the Asian region. As per the Rating India positive factors are its large and diversified Economy, medium term growth prospect, strong domestic savings and the negative side are persistent fiscal deficit, policy logjam due to politics inflation challenges and poor infrastructure.
No comments:
Post a Comment