Home / Knowledge / News / Textiles / Moody's cuts India's credit ratings outlook to negative

Moody's cuts India's credit ratings outlook to negative

08
Nov '19
Pic: Shutterstock
Pic: Shutterstock
Citing a growing debt burden and the government’s struggle to narrow the budget deficit, Moody’s Investors Service has cut India’s credit ratings outlook to negative from stable over concerns that stunted economic growth cannot be helped. New Delhi responded by saying that the economwy’s fundamentals are robust with inflation under check and bond yields low.

The rating company affirmed the nation’s foreign issuer rating at Baa2, the second-lowest investment grade score.

“India continues to offer strong prospects of growth in near and medium term,” the Indian ministry of finance said in a press release responding to the change in outlook. “India continues to be among the fastest growing major economies in the world, India’s relative standing remains unaffected,” it added.

Financial stress, especially in rural areas, and low job creation calls into question how effective the nation’s government is in addressing economic sluggishness, William Foster, vice president of Moody’s sovereign risk group, wrote in a statement.

“A prolonged period of slower economic growth would dampen income growth and the pace of improvements in living standards, and potentially constrain the policy options to drive sustained high investment growth over the medium-to long term," he wrote.

Investors will closely watch the nation’s gross domestic product data for signs of further, long-lasting weakness, which could result in another negative shift, according to Moody’s. Stabilisation in the non-bank financial sector, meantime, would be credit positive and could flag less risk of negative spillover into banks.

Fibre2Fashion News Desk (DS)


Interviews View All

Headhonchos, Indian fashion industry

Headhonchos
Indian fashion industry

Cotton consumption will keep growing in the Indian fashion industry

Binoy Ravjani, Hero's Fashion

Binoy Ravjani
Hero's Fashion

‘One of the recent trends in hand block printing is the indigo process,...

Janak Dhamanwala & Sunil Dhamanwala, Jansun

Janak Dhamanwala & Sunil Dhamanwala
Jansun

Moving towards sustainability is also a social change

Christiane Thies,

Christiane Thies

Founded in 1892, Thies has concentrated on the fabrication of high-quality ...

Sandip Bhojani, Manthan Patel,

Sandip Bhojani, Manthan Patel

Krypthm Tradelink LLP is a Surat-based manufacturer of westernwear....

Shyam Gupta & Ravi Gupta,

Shyam Gupta & Ravi Gupta

Based out of South Delhi, Gargee Designer's provides bespoke formal and...

Pierre Wiertz, EDANA

Pierre Wiertz
EDANA

Pierre Wiertz talks about the vast world of sustainable nonwovens and...

Justin Gutierrez, INDA

Justin Gutierrez
INDA

The Association of the Nonwoven Fabrics Industry (INDA) has created a new...

Madison Maxey, Loomia

Madison Maxey
Loomia

Loomia designs and manufactures soft circuit systems that can be produced...

Prathyusha Garimella, Prathyusha Garimella

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Aditi Somani, Aditi Somani

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Adriano Goldschmied, AG Jeans

Adriano Goldschmied
AG Jeans

The hype around 'designer jeans' was created by him. And the new wave of...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


November 2019

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

Follow us on instagram

Follow

Follow Fibre2Fashion On


Advanced Search