Sovereign rating downgrade poses risk for India's green energy investors

The recent downgrading of India’s sovereign credit rating poses increased risk for attracting global investors in the country’s renewable energy sector.
 

Earlier this month, Moody’s cut the country’s sovereign credit rating by a notch to the lowest investment grade with negative outlook. The country’s credit rating was revised down to Baa3 from Baa2. In April, both Moody’s and Fitch had warned that deterioration in India’s fiscal outlook as a result of lower growth could exert pressure on its sovereign rating.
 

“Foreign investors would now be shy of investing in India’s promising renewable energy generation sector, especially solar power. In last