India’s sovereign downgrade a sign of escalating stress: ANZ
NEW DELHI -- Moody's has downgraded India's foreign and local currency long-term issuer ratings to Baa3, the lowest investment grade rating. The rating outlook is maintained at negative, reflecting 'deeper stresses in the economy'.
ANZ Bank says it reads this downgrade as testament not so much to India's deteriorating fiscal dynamics due to the current COVID-19 crisis, but more because of expectations of a prolonged period of slow growth and financial sector stress.
ANZ says it does not see Moody's action being replicated by the other two rating agencies, which have already assigned India the lowest investment grade. Its adds: "Despite the downgrade, we continue to bat for the need for greater fiscal push to fight India's current recession."