CURRENT AFFAIRS

Detailed explanation-1: -In November 2019 Moody’s had downgraded India’s sovereign rating by a notch to Baa3 from Baa2 with a negative outlook over a weak reform push contributing to a prolonged period of slow growth that it expected to continue beyond the Covid-19 pandemic.

Detailed explanation-2: -Among factors that may lead to a downgrade of India, it listed “weaker economic conditions than we currently expect that pointed to lower growth over the medium term and/or a resurgence of financial sector risks.”

Detailed explanation-3: -Standard & Poor’s credit rating for India stands at BBB-with stable outlook. Moody’s credit rating for India was last set at Baa3 with stable outlook.

Detailed explanation-4: -Baa3. The lowest rating of investment grade Moody’s Long-term Corporate Obligation Rating. Obligations rated Baa3 are subject to moderate credit risk. They are considered medium grade and as such may possess certain speculative characteristics. Rating one notch higher is Baa2.

Detailed explanation-5: -Moody’s retained India’s sovereign credit rating of Baa3 with a stable outlook. The agency said that India’s credit profile reflects strengths, including its large and diversified economy, a relatively strong external position, and a stable domestic financing base for government debt.