NY-based American credit rating agency, Moody’s Investors Service, often dubbed as Moody’s and contemplated as one of the top three credit rating agencies across the world alongside S&P and Fitch’s, cuts India’s credit ratings outlook to “negative” from an earlier “stable” on Friday, the 8th of November 2019, adding that the world’s third-largest economy by purchasing power parity (PPP) and Asia’s third-largest by nominal GDP (Gross Domestic Product) had been facing off a much-higher than anticipated slowdown risk over the recent past, remarking a quicker spread of a global-scale slowdown into the Indian sub-continent.
Aside from that, a report published by Moody’s on Friday (November 8th) had also forecasted that India’s economy would be growing at a slower pace over the years ahead which in effect had dragged India’s major stock indices roughly 1 per cent down on Friday’s (November 8th) market closure.
Besides, according to Moody’s Friday’s (November 8th) report, its latest downgrading of India’s credit rating to negative was almost entirely prodded by a swathe of policy ineffectiveness mostly in private sectors, while the US-based multinational rating agency had also trimmed outlook for 21 Indian Companies operating in government-owned and private divisions including the State Bank of India (SBI), Indian Oil, NTPC Ltd.
and Infosys Ltd, to “negative” from an earlier “stable”. Nonetheless, Moody’s kept the Southeast Asian economic giant’s local and currency outlook unchanged, however, added that the nation’s economy grew by 5 per cent on a year-on-year basis on Q2, 2019, remarking its slowest growth rate since 2013.