Three Major Rating Agencies including moody’s investors Service, Standard and poor’s (S&P), and Fitch Ratings, has Reaffirmed india’s Sovereign Credit Rating at Investment Grade during the Year

Press Information Bureau

Government of India

Ministry of Finance

13-December-2012 18:43 IST

During this calendar year, each of the ‘big three’ rating agencies, namely Moody’s Investors Service, Standard and Poor’s (S&P), and Fitch Ratings, has reaffirmed India’s sovereign credit rating at investment grade.

These agencies have not taken a uniform view about the outlook on India’s sovereign ratings. While S&P and FITCH Ratings changed their rating outlooks from stable to negative in their reports released in April 2012 and June 2012 respectively, Moody’s has maintained its rating outlook at stable in its reports released in June 2012 and November 2012.

The change of outlook by S&P and Fitch ratings does not appear to have had any significant negative impact on the Indian stock markets or on the value of the Indian rupee. When compared to the market closing on 30th December 2011 (the last working day for the stock markets in 2011), the Indian stock market, as measured by NIFTY 50, appreciated by 27.78% as on December 10, 2012. During this period, value of the rupee, as measured by RBI’s reference rate for the USD-INR pair, depreciated by only 1.97%.

Government has taken a number of steps with a view to enhancing the growth prospects of the economy and improving investor sentiments. These include measures for liberalization of FDI regime, liberalisation of ECB regime, announcement of five-year fiscal consolidation path, improvement in targeting of subsidies and improvement in the functioning of capital markets etc.

This was stated by the Minister of State for Finance Shri Namo Narain Meena in a written reply to a question in the Rajya Sabha today.

* * * * *
DSM/RS/ka