The real non-tariff barrier called CRA
Hindustan Times Noida|January 07, 2025
The current model of sovereign credit rating has outlived its utility and is not in step with present global economic realities
Janmejaya Sinha Deep Narayan Mukherjee

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 defendable, 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.

Bu hikaye Hindustan Times Noida dergisinin January 07, 2025 sayısından alınmıştır.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

Bu hikaye Hindustan Times Noida dergisinin January 07, 2025 sayısından alınmıştır.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

HINDUSTAN TIMES NOIDA DERGISINDEN DAHA FAZLA HIKAYETümünü görüntüle
Hindustan Times Noida

Veganuary 2025: Plant-Powered Path to Better Health

For those leaning towards veganism, Veganuary is a great way to take the plunge. We speak to experts about the health benefits of this challenge

time-read
2 dak  |
January 09, 2025
Hindustan Times Noida

'I learnt the hard way to say no to bad work'

For Rashami Desai, 2024 was a learning experience. \"There have been a lot of ups and downs in the last year. And I faced a lot of personal challenges. So, I was working on myself,\" says the actor, adding, \"Due to travel, I faced some severe gut issues that were neglected and later became a bit severe. I should have actually acknowledged it at the time. But while working, you tend to push things aside. As a result, I developed food allergies. So, I have to be cautious about what I eat.\"

time-read
2 dak  |
January 09, 2025
Hindustan Times Noida

Ajith's car crashes at 180 km/h; manager calls him lucky to walk away

Tamil actor and avid motorsport enthusiast Ajith Kumar, 53, narrowly escaped injury after a dramatic crash during a practice session for the upcoming 24H Dubai endurance race.

time-read
1 min  |
January 09, 2025
Hindustan Times Noida

Varun-Natasha buy ₹44.52cr luxury apartment in Mumbai

Actor Varun Dhawan and his wife, designer Natasha Dalal, have reportedly acquired a ₹44.52 crore luxury apartment in Mumbai's upscale Juhu area.

time-read
1 min  |
January 09, 2025
Hindustan Times Noida

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

time-read
3 dak  |
January 09, 2025
Hindustan Times Noida

AFI Reworks National Camp Plan for Athletes

Indian athletics is entering uncharted territory.

time-read
3 dak  |
January 09, 2025
Hindustan Times Noida

IGU polls: PT Usha hits out at ministry

Pointing to procedural lapses by the Sports Ministry in granting recognition to Brijinder Singh-led Indian Golf Union, Indian Olympic Association (IOA) president PT Usha has urged Sports Minister Mansukh Mandaviya to \"recall\" the order.

time-read
1 min  |
January 09, 2025
Hindustan Times Noida

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.

time-read
3 dak  |
January 09, 2025
Hindustan Times Noida

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.

time-read
4 dak  |
January 09, 2025
Hindustan Times Noida

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'.

time-read
3 dak  |
January 09, 2025