Moody’s Investors Services has Lowered its Outlook -
Moody’s Investors Services has Lowered its Outlook
Posted 08 Nov 2019 05:03 PM

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Moody’s Investors Services has lowered its outlook on India’s sovereign credit rating after a series of steps unveiled by the government to prod the economy out of a demand trough. The rating agency expects the slowdown to endure, as the tax giveaways feed a fiscal deficit higher than budgeted.

The government has been quick to point out that the macro-economic fundamentals are not quite so dire, and reforms were undertaken to revive exports, manufacturing and real estate over the last three months are expected to restore India’s growth momentum. Low inflation and interest rates are markers against a prolonged credit squeeze that Moody’s expects or the fears of contagion in financial markets flagged by fellow rater S&P Global Ratings.

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