The sovereign ratings that the big three (S&P, Moody's, Fitch) credit rating agencies (CRA) assign a country impact its access to and cost of borrowing in international markets. We discuss whether the methodology used by them is defensible, objective, and unbiased.
But first a story on the sovereign rating trajectory of Greece and India. Currently, both are rated BBB-, which is the lowest investment grade. Between 1994 and 2003, CRAs gave a massive six-notch upgrade to Greece, moving it from BBB- to A+. Crisis struck Greece in 2008 and thereafter, it missed debt payment in 2012. Bailouts did not help. Greece defaulted to the International Monetary Fund (IMF) in 2015. Its rating was lowered to C. Yet, after 2016, its rating bounced up by seven notches and landed at investment grade BBB- with a positive outlook by 2023.
In 2000, India was rated BB. Then, in 2005, CRA upgraded India to BB+, and finally, in the 2006-07 period, to BBB-, where it has remained ever since. Independent India has never defaulted. It last went to the IMF in 1991 but repaid its debt early. The Asian financial crisis in 1999 and the global financial crisis in 2008 did not impact India. In 2012, with a minor hiccup in its economy, S&P immediately gave a negative rating outlook to its BBB- rating, and only in 2024 has given a positive outlook.
If we compare the macroeconomic parameters of India with Greece it reveals the following.
Denne historien er fra January 07, 2025-utgaven av Hindustan Times Uttarakhand.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra January 07, 2025-utgaven av Hindustan Times Uttarakhand.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
AFI Reworks National Camp Plan for Athletes
AFI's new policy on training
Newcastle win at Arsenal to put one foot in the final
Newcastle took a giant stride towards the League Cup final as goals from Alexander Isak and Anthony Gordon earned a 2-0 semi-final, first leg lead at Arsenal on Tuesday.
Chasing history, Spaniard seeks big push Down Under
Alcaraz, who owns 4 Grand Slam titles, will have to shake off his habit of a slow start every season
Friendship, coaching rivalry and cricket connections
Sitting in the stands of the Birsa Munda Hockey Stadium, Craig Fulton was observing the Indian players in a training session of Hockey India League (HIL) franchise Team Gonasika.
All eyes on Rohit, Bumrah and Shami in CT selection
After a forgettable three months in international cricket, his runs having dried up and India losing two Test series in a row under his watch, skipper Rohit Sharma would be eagerly awaiting a return to coloured clothing; that too ODI cricket, his most favoured format.
Australia tour rubble shows domestic cricket deserves more respect
India suffered two shattering jolts – first New Zealand and now Australia – but in the gloom there is a silver lining, what teams call 'positives'.
Govt aims to recover over ₹46.57 lakh cr in tax arrears
The cumulative direct tax arrears soared to ₹42.30 lakh cr in October 2024
Gold import revision cuts Nov trade deficit by $5 bn
India's record trade deficit for November has been revised downward to $32.8 billion from $37.8 billion, after the government made a sharp correction in gold import data.
India Inc. focuses on core areas with exits, buyouts
Stick to your knitting. That's the latest motto for many large Indian companies as they go for demergers and selloffs, while some of them snap up businesses in their primary focus areas.
Allcargo to sell stake in Gati
Allcargo Logistics Ltd is looking to sell 25-40% stake in its subsidiary Allcargo Gati Ltd which it acquired nearly five years ago, two people aware of the development said.
