NEW DELHI: A day ahead of its interaction with government officials, international rating agency Moody's Investors Service said it could upgrade India's rating in one-two years if it is convinced that reforms are "tangible". The New York City-headquartered rating agency, which has 'Baa3' rating with positive outlook on India, said evidence of policymakers working towards faster fiscal consolidation, reducing the debt-GDP ratio and addressing infrastructure and monsoon volatility challenges will determine an upgrade. "We have a positive outlook on India.
The European Union has suffered a downgrade of its long-term credit rating following the UK’s Brexit vote last week, reports The Guardian.
In a move that will increase the borrowing costs for the 28-member bloc, the credit ratings agency S&P said the EU should see its status as a safe haven for investors reduced to AA from AA+.
Last week I wrote an article for the Illinois Policy Institute on the hugely unfunded and deteriorating outlook for Illinois' numerous pension systems,well ahead of downgrades on Chicago's debt by Moody's on Friday.I will post the article on my blog on Monday. Knowing what I do about Illinois pensions, I was not surprised to see this Bloomberg story on Friday: Chicago Credit Rating Cut by Moody's to Two Steps Above Junk.
NEW DELHI: Against the backdrop of controversies like on beef, Moody's Analytics today cautioned Prime Minister Narendra Modi that the country may lose domestic and global credibility if he doesn't rein in the members of his party. In a report titled India Outlook: Searching for Potential, Moody's Analytics said for the country to reach its growth potential it has to deliver the promised reforms. "Undoubtedly, numerous political outcomes will dictate the extent of success," it said.
DUBAI: Moody's Investors Service has cut its outlook for the debt ratings of Saudi Arabia and three other Gulf states while lowering Bahrain's rating to junk, citing concern over the impact of low oil prices on their finances. Saudi Arabia's Aa3 rating was placed on review for a possible downgrade, Moody's said late on Friday, adding that it would study whether Riyadh's efforts to expand its non-oil revenues and diversify its economy were likely to work.
With Japan's public debt about to hit 240% of GDP, Fitch Downgrades Japan's Sovereign Rating
The ratings agency Fitch on Tuesday lowered its assessment of Japan’s sovereign credit to A+, an investment grade just above the likes of Spain and Italy, and criticized Tokyo for not doing more to pare down its burgeoning debt.
ATHENS — Ratings agency Fitch upgraded its sovereign credit rating for Greece by one notch on Tuesday, citing the country’s progress in cutting its budget deficit and the receding risk of its eurozone exit.
After nearly crashing out of the euro last year and coming under attack for stalled reforms, Greece has won praise in recent months from its international lenders for getting back on track and pushing through unpopular austerity measures.
Moody's has cut Italy's long-term senior unsecuredd government debt rating outlook from 'stable' to 'negative', leaving it at Baa2 for now. Citing "slow and halting progress" on economic and fiscal reform in Italy, noting that reduction in Italy’s large debt burden will be further postponed given subdued medium-term growth prospects, recent fiscal slippage.
The drivers for today's rating action are:
The outlook for Canada’s economy is becoming increasingly tentative, and that is putting key reforms— from erasing government deficits to heftier pension payments — out of reach for now.
Finance ministers across the country share the same roadblocks to growth as their federal counterparts. Attempts to clear those away have been set back by economic problems beyond their control.
A year ago, in order to prevent the collapse of the Eurozone, the ECB came out with the first (of many) deus ex machina bazooka when it unveiled the OMT - a massive project so ambitious, it never actually existed (its legal term sheet has never been unveiled and never will be unveiled simply because it is by definition impossible) but was merely intended to scare everyone into submission by the ECB's sheer will (or stupidity - it is still unclear which prevailed).