AA+ not bad for US, won't impact markets much: Keki Mistry
Standard & Poor's cut US rating to AA+ from triple-A, sending jitters across global markets. But this rating, according to Keki Mistry, isn't bad. He doesn't see a dramatic reaction in markets. "I think emerging nations will drop maximum 5-10%," he sai.
August 09, 2011 / 23:08 IST
Standard & Poor's cut US rating to AA+ from triple-A, sending jitters across global markets. But this rating, according to the vice-chairman and chief executive officer of HDFC Keki Mistry, isn't bad.
He doesn't see a dramatic reaction in markets. "I think emerging nations will drop maximum 5-10%," he told CNBC-TV18 in an exclusive interview, adding that India is probably most insulated from global problems.The rupee, however, might see a weakening, according to him. "I expect the currency to be about 45 in the next week," he said. (HERE is how the currency is traded on Friday)Unsure if the downgrade makes the third quantitative easing programme a certainty, Mistry, however, said, further ECB relaxation will surely be very good news.
Below is the edited transcript of the exclusive interview. Also watch the accompanying video.Q: In a sense, we have known about the possibility of this S&P downgrade of the US. How would you read the situation at this point in time given the fact that we are already faced with a lot of uncertainty and a very fragile environment even as far as the European Union is concerned?
A: I think you said correctly, it was very much expected. The fall in the US market on Thursday was probably in anticipation of something like this happening, so I don
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