After more than a decade of ultra-loose monetary policy, financing conditions are tightening, inflation is rising and the global economy looks poised to fall into its first recession since 2009.
The rating agency said the credit ratio, which illustrates the number of upgrades to downgrades, rose to over 2.5 times in the first four months of the fiscal, as compared to 1.33 times in the second half of FY21, it said in a statement.
The country's external debt stood at USD 462 billion as of December 2014, out of which 80.5 percent were non-government debt, according to the Finance Ministry data. Over 35 percent of the external debt of private corporates are unhedged.
In a relief to the utility, electricity regulator CERC last month allowed higher tariff as well as compensation of Rs 329.45 crore for Tata Power's 4,000 MW Mundra project to compensate for increase in the price of imported coal.
Moody's Michael Taylor believes the credit outlook for India looks stable as the government deficit is largely funded domestically. Also, the measures taken by the Reserve Bank of India will tame inflation and support rupee going ahead.
The United States government's S&P outlook has been revised to 'stable'.
Despite slowing economic growth, Shriram Transport Finance Company expects a loan growth of 12-15% in FY13.
Fitch has maintained the top notch 'AAA' rating on the United States even as it maintained the credit outlook at negative citing risks associated with political disagreement over ways to reduce ballooning deficit. 'AAA' is the highest investment grade rating.
Global agency Fitch on Monday lowered the rating outlook of public sector companies including NTPC, SAIL and IOC to 'negative', but said the downgrade of India's credit outlook to 'negative' would not impact the rating of Reliance Industries.
Ongoing debt crisis in the eurozone and weak growth in the US will moderate credit outlook in the Asia-Pacific region in 2012, says a study by Standard and Poor's rating services.