InvestorQ : Is it true that S&P has taken a more positive view on India compared to Moody’s with respect to sovereign rating?
diksha shah made post

Is it true that S&P has taken a more positive view on India compared to Moody’s with respect to sovereign rating?

Answer
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Juvina Maggie answered.
3 months ago


That is correct because despite the upgrade of Indian ratings in 2017, today Moody’s is more pessimistic about India than S&P. In fact, Andrew Wood of S&P has clarified that the long term 7% growth trajectory of India was still intact despite the COVID-19 pandemic. On Wednesday, S&P had retained its rating at the lowest investment grade for India sovereign debt. Unlike Moody’s, S&P retained the outlook for the Indian economy at Stable. Moody’s had downgraded India’s outlook to negative along with a rating downgrade. Wood clarified that while the Indian economy could likely contract by 5% in FY21, the economy could bounce sharply in 2022. That may be the good news and Fitch is likely to follow suit.