Rupee weakness affects India credit profile: Moodys

The rupee had slumped to a record low of 59.9850 rupee to the dollar on Thursday, as the country's record high current account deficit is exacerbating its vulnerability in an emerging market rout.
  • Language
  • App
  • Subscriptions
  • Specials
  • Sign-In
  • Register
GeStepAhead Masteryourmoney Earnings
moneycontrol.com

Home » News » Economy

Jun 21, 2013, 10.36 AM | Source: Reuters

Rupee weakness affects India credit profile: Moody's

The rupee had slumped to a record low of 59.9850 rupee to the dollar on Thursday, as the country's record high current account deficit is exacerbating its vulnerability in an emerging market rout.

Like this story, share it with millions of investors on M3

Rupee weakness affects India credit profile: Moodys

The rupee had slumped to a record low of 59.9850 rupee to the dollar on Thursday, as the country's record high current account deficit is exacerbating its vulnerability in an emerging market rout.

Post Your Comments

Share Cancel

Rupee weakness affects India credit profile: Moodys
The rupee's weakness reflects domestic economic challenges, primarily a high current account deficit and lower capital flows, but does not significantly impact India's foreign debt repayment capacity, Moody's told Reuters on Friday.

Also read: Indian rupee opens weak at 59.80 per dollar

"Given the very low level of foreign currency debt owed by the Indian government, rupee depreciation does not significantly affect sovereign debt repayment capacity," said Atsi Sheth, vice-president of the sovereign risk group at Moody's Investors Service, in an e-mailed response.

"However, it is a reflection of macro-economic challenges, which do affect the country's credit profile."

Sheth said Moody's current rating of "Baa3" for India - the lowest investment-grade level - incorporates macro-economic imbalances and recent trends in the current account, capital flows, and the exchange rate.

The rupee had slumped to a record low of 59.9850 rupee to the dollar on Thursday, as the country's record high current account deficit is exacerbating its vulnerability in an emerging market rout.

Moody's currently has a "stable" outlook on India's ratings, in line with Fitch Ratings. Standard & Poor's maintains a "negative" outlook.

Ads by Google

Buy, Hold, Sell ? Hear it first on M3
Rupee weakness affects India credit profile: Moodys

See all

Get started using your favorite social network

or

Login using moneycontrol ID

Username
Password

Need help logging in? Reset password.

Don´t have an account? Sign Up

Get started using your favorite social network

or

Simply sign up using this short form

* mandatory

UserName*

Username should be atleast 4 character

Password*

Password should be 8 or more characters,
atleast 1 number, 1 symbol & 1 upper case letter

Alert

Your Password should contain
  • 8 or more characters
  • At least 1 number
  • At least 1 symbol
  • At least 1 upper case letter
Confirm Password*
Email
Already have an account? Login