New Delhi: Finance Minister Pranab Mukherjee on Monday rejected Fitch downgrade of India's credit outlook to negative saying the rating agency's action was based on "older data" as it ignored recent positive trends.
"While the markets had already anticipated that Fitch would revise the outlook and so there is no surprise in the announcement, it must be pointed out that Fitch has primarily relied on older data, and has ignored the recent positive trends in the Indian economy," Mukherjee said in a statement.
Fitch on Monday lowered India's credit rating outlook to negative from stable, less than three months after rival Standard and Poor's did a similar downgrade. It cited corruption, inadequate reforms, high inflation and slow growth as reasons for the revision.
Mukherjee said that Fitch has not taken note of many of the government's recent initiatives including fertilizer subsidy reform, capping subsidies as a fraction of GDP, new manufacturing and telecom policies....more
06:20 PM, Jun 18, 2012
New Delhi: Fitch Ratings has revised India's outlook to negative from stable. Its Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) have been affirmed at 'BBB-' and Short-Term Foreign Currency at 'F3'. India's Country Ceiling is also affirmed at 'BBB-'. The Outlook revision reflects heightened risks that India's medium- to long-term growth potential will gradually deteriorate if further structural reforms are not hastened, including measures to enhance the effectiveness of...
04:45 PM, Jun 18, 2012