Global rating agency Moody’s changed the outlook on India’s economy to ‘Negative’ from ‘Stable.’ However, it has affirmed the sovereign rating of ‘Baa2.’
The change in outlook means that an upgrade in ratings in near future is unlikely. ‘Baa2’ is a notch above last investment grade. Outlook and rating are key considerations for foreign investors to make investment in any country.
India’s GDP growth rate slowed down to 5 per cent during first three months (April-June) of the current fiscal, and is likely to go down further during second three-month (July-September) period. This number will be made public at the end of this month.
About Moody’s Investor Service:
- It is an American credit rating agency.
- It is the bond credit rating business of Moody’s Corporation, representing the company’s traditional line of business and its historical name.
- Moody’s Investors Service provides international financial research on bonds issued by commercial and government entities.
- Moody’s, along with Standard & Poor’s and Fitch Group, is considered one of the Big Three credit rating agencies.
- Headquarters: New York