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Downgrade of India's sovereign rating by Moody's not surprising: SBI report

India's sovereign rating was downgraded by Moody's to Baa3 with a negative outlook on the pretext of prolonged period of slower growth, rising debt and stress in financial system.

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The rating action, the report said, was no reflection on the ability of the Indian government to service its debt obligations.

Press Trust of India New Delhi

3 min read Last Updated : Jun 24 2020 | 10:21 AM IST

The downgrade of India's sovereign rating by Moody's has not come as a surprise as global rating agencies have lowered ratings and outlook of about 21 emerging economies following COVID-19 outbreak, SBI said in a report on Tuesday.

India's sovereign rating was downgraded by Moody's to Baa3 with a negative outlook on the pretext of prolonged period of slower growth, rising debt and stress in financial system.

Apart from sovereign rating downgrade, Moody's has taken rating actions on 11 Indian banks.

"...It seems that the downgrade was not completely unexpected. This is clearly visible in the data that market is not yet impacted

Topics : Coronavirus Lockdown Gross Domestic Product (GDP) Moody's Rating Indian Economy MSME sector S&P BSE Sensex NSE Nifty Indian Banks India's sovereign rating State Bank of India SBI GDP growth

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