CURRENT AFFAIRS

Detailed explanation-1: -Fitch Affirms India at ‘BBB-’; Outlook Stable. Fitch Ratings - Hong Kong - 20 Dec 2022: Fitch Ratings has affirmed India’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘BBB-’ with a Stable Outlook. A full list of rating actions is at the end of this rating action commentary.

Detailed explanation-2: -Fitch Ratings on December 20, 2022 retained its rating for India at ‘BBB-’ with a stable outlook, even as it expected a modest ‘fiscal slippage’ this year from the central government’s fiscal deficit target of 6.4% to GDP to 6.6% of GDP, due to higher food and fertiliser subsidies.

Detailed explanation-3: -India Ratings is a wholly owned subsidiary of the Fitch Group. India Ratings currently maintains coverage of corporate issuers, financial institutions, which includes banks and insurance companies.

Detailed explanation-4: -Box 1: What are Sovereign Credit Ratings? Sovereign credit ratings seek to quantify issuers’ ability to meet debt obligations. When favourable, these can facilitate countries access to global capital markets and foreign investment. Table below presents what three key CRAs – S&P, Moody’s and Fitch, seek to measure.

Detailed explanation-5: -Moody’s had in October 2021 changed the outlook on the Government of India’s ratings to stable from negative and affirmed its foreign-currency and local-currency long-term issuer ratings and the local-currency senior unsecured rating at Baa3.