CareEdge assigns BBB+ to India, first Indian agency in global ratings space

CareEdge Global IFSC Ltd, a subsidiary of CARE Ratings Ltd, on Thursday assigned a long-term foreign currency (LTFC) rating of CareEdge BBB+ to India, citing India's resilient post-pandemic recovery and its focus on infrastructure investment, the company said in a release.

CareEdge has released its inaugural report on sovereign ratings, covering 39 global economies. With this, CareEdge became the first Indian credit rating agency to enter the global scale ratings space, including sovereign ratings.

The agency projects a gradual reduction in India's general government debt-to-GDP ratio, from the current 80 per cent to 78 per cent by FY30 and 73.5 per cent by FY35, supported by robust nominal GDP growth and fiscal consolidation. India's large, diverse economy and projected GDP growth of 6.5-7 per cent in the coming years, along with strong foreign exchange reserves and low external debt, bolster its credit profile. However, these strengths are offset by high government debt, weak debt affordability, low per capita income, and vulnerability to global oil price shocks due to the country’s significant oil import dependency (Rs 85 per cent).

 

In its inaugural sovereign rating action, CareEdge Global has assigned an AAA rating to Germany, the Netherlands, Singapore, and Sweden; AA+ to Australia, Canada, and the USA; and AA- to France, Japan, Korea, the UAE, and the UK. Countries such as Portugal received an A+ rating, while China and Spain were rated A, and Chile, Malaysia, and Thailand received A-. India, Botswana, and the Philippines were assigned BBB+, with Indonesia, Italy, and Mauritius rated BBB. Lower ratings include BBB- for Mexico, Morocco, and Peru; BB+ for Brazil, Colombia, Greece, and Vietnam; and BB for South Africa. Turkey was rated B+, Nigeria B, Ecuador and Egypt B-, Bangladesh CCC+, Argentina CCC, and Ethiopia received a D rating.