Will India Lose its Investment Grade Status due to COVID Crisis?

  • Investing.com
  • Economy News
Will India Lose its Investment Grade Status due to COVID Crisis?
Credit: © Reuters.

By Aditya Raghunath

Investing.com -- In a report that could alarm investors who are bullish on the country, Reuters has cautioned that India could lose its prized ‘investment grade’ status after the severe impact that the second wave of the COVID-19 pandemic has had on its economy.

The three main rating agencies – S&P, Moody’s and Fitch – have already downgraded India’s growth prospects recently, and have said that more downgrades could be in order. In addition to the downgrades, government debt will jump to 90% of the GDP, a new record for India.

The Reuters report quoted NN Investment Partners’ head of Asian Debt, Joep Huntjens who said, “We still see India as investment-grade…  But we do think there is at least a 50/50 chance that at least one rating agency downgrades, probably next year”.

UBS has said that India has the third-highest debt level among big emerging markets after Brazil and Argentina. UBS’ head of emerging market strategy Manik Narain is sure that a downgrade will take place. He said, “We do see the risk that it (a downgrade) can definitely happen. It seems more a question of when rather than if.”

The last 30 days have seen a number of agencies downgrade India’s GDP growth potential for FY22. India reported 3.43 lakh cases on Thursday with 3,994 deaths.

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or

100
  • Gokul Ch @Gokul Ch
    Hello, I am the insider of operator!
    Like 4
    • JITENDER KAUL @JITENDER KAUL
      what is the correlation of your comment with this article.
      Like 0
    • Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

      Error: File type not supported

      Drop an image here or

      100
  • Rakesh Prasad @Rakesh Prasad
    India is a country where all ehll break loose.
    Like 1
  • Sanjay Kumar @Sanjay Kumar
    I think he is right.
    Like 2
  • Sanjay Kumar @Sanjay Kumar
    I think he is right.
    Like 3
  • Sukanya Rajesh @Sukanya Rajesh
    Wrong
    Like 1
  • Chandrakar Kumar @Chandrakar Kumar
    You should not post such type of article during market hours. You may be the insider of operator.
    Like 7

Related Articles