Sovereign Credit Profile

It can 'exacerbate volatility' in the country's economic growth and spark social unrest, says agency

Fitch Ratings said that though the interim budget presented was broadly in line with the expectations, it won't change the sovereign credit profile from 'BBB-' with a stable outlook

Moody's lowered its outlook to negative from stable while retaining a long-term rating of A1 on the nation's sovereign bonds, according to a statement

Her budget then sent the spread between bonds of Italy and Germany - a key measure of risk in the region - to 210 basis points for the first time since January

The credit rating agency Moody's Investors Service lowered its outlook on the US government's debt on Friday to "negative" from "stable", citing the cost of rising interest rates and political polarization in Congress. Moody's retained its top triple-A credit rating on U.S. government debt, though it is the last of the three major credit rating agencies to do so. Fitch Ratings lowered its rating to AA+ from AAA in August, and Standard and Poor's downgraded the US in 2011. A reduced outlook, however, raises the risk that Moody's could eventually strip its triple-A rating from the US as well. A lower rating on US debt could cost taxpayers if it leads borrowers to demand higher interest rates on Treasury bills and notes. The yield on the 10-year Treasury has risen significantly since July, from about 3.9 per cent to 4.6 per cent Friday, an unusually sharp rise. Some market analysts have said the August Fitch downgrade may have contributed to that increase, though most point to other .

Countries with highest credit rating at S&P Global Ratings, Fitch and Moody's Investors Service include Germany, Denmark, Netherlands, Sweden, Norway, Switzerland, Luxembourg, Singapore and Australia

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A higher rating for India would mean the nation is less riskier, translating into lower interest rates on borrowings

As per the release, India's sovereign ratings has been retained by Moody's at Baa3 with a stable outlook

An RBI report says even in the best case scenario, general govt debt may not dip below 75% of GDPl and if there are events, it may in fact rise to 90% of GDP by 2026-27

The decision comes as FTSE Russell is set to start adding Chinese debt to its benchmark global bond index, which the GPIF follows, from October

S & P Global Ratings expects most Asia Pacific sovereign credit ratings to remain unchanged in the next one to two years despite continued pressures posed by Covid-19."We have stable outlooks on more than two-thirds of 21 long-term sovereign ratings in the region currently," it said in a report published on Wednesday.Covid-19 vaccines rolled out in several countries from late 2020 have helped to reduce pandemic-related uncertainties on the trends of economic and fiscal indicators.The better clarity has allowed a few positive rating actions on governments that showed strong credit metrics for their respective rating levels at the beginning of the year."We expect much of Asia Pacific to return to relatively strong economic performance once the region has Covid-19 under control," said the report."Many parts of the region have been significantly affected by the pandemic and have seen sharp economic contractions in 2020. However, we believe the episode has not seriously damaged their ..

The US grade would drop by two notches, and as much as three levels for Germany, India and the Netherlands.

The estimates comes amid warnings by policy makers from around the world that financial markets are underpricing the risk of climate change on asset prices, with potentially costly future corrections

India's sovereign rating should not come under pressure due to surge in fiscal deficit which was mainly on account of higher expenditure to deal with the C-19 pandemic, said Economic Affairs Secretary

Moody's Investors Service has rated Tata Consultancy Services, Infosys and Reliance Industries above the sovereign for their strong financials and significant global earnings

Retains ratings at lowest investment grade

Debt of Centre and states combined is over 70% of GDP already; country is currently just a notch above junk

There is a downside to the fall in the value for the corporate and banking sector and it will add to existing pressures in the corporate and banking sectors