The Indian government has been in a running battle with S&P Global Ratings, Moody's Investors Services, and Fitch Ratings as it thinks the sovereign rating assigned to the country is not a fair reflection of its economic strength.
According to the government's top economist, an objective assessment of governance levels in countries – and in turn, their credit ratings – could help reduce financing costs for emerging economies by billions of dollars
CareEdge's sovereign ratings will broadly follow the methodology of the global agencies, but will look to capture the nuances of emerging economies, such as the size of an economy, investment-to-GDP ratio, and per capita income in Purchasing Power Parity terms
Budget 2017 illustrated government‘s commitment towards improving fiscal performance. However, implementation is key and policy anchors are necessary for that, said Kyran Curry, Director, Sovereign Ratings, S&P Global Ratings.
As per the agency, GDP growth is likely to be at 7.4 per cent this fiscal and 8 per cent in the next, based on new series.
"Recurrent inflationary pressures keep domestic capital costs high, erode domestic purchasing power as well as savings and lower international competitiveness," the rating agency said.
The chatter on Friday`s downgrades of European sovereign ratings debt is all over the place - from those dismissing it as old news (especially given that SandP warned back on December 5th) to those viewing it as part of a larger and consequential transformation of the international monetary system.