NEW DELHI: Days after slashing India’s growth forecast to a three-decade low of 2% for fiscal 2021, Fitch Ratings on Tuesday said rapid deterioration in the global sovereign rating outlook due to the coronavirus outbreak and sharp fall in oil prices may force it to make multi-notch downgrades of countries across the world over the rest of this year. “While we endeavour to rate through economic cycles, multi-notch sovereign downgrades are more common during economic and financial crises of the type the global economy and credit markets are now entering.
Our forecasts and expectations, for example regarding sovereigns' debt trajectories or their ability to access financing, can be dramatically altered by the nature and speed of the pandemic