Moody’s Investors Service on Tuesday cut India’s sovereign rating by a notch to the lowest investment grade with a negative outlook.
Mint explains the reasons behind the downgrade and what it means for various stakeholders Why did Moody’s downgrade India? In November 2017, Moody’s upgraded India’s sovereign rating hoping that the structural reforms that were being undertaken by the government will lift up the country’s potential growth.
A lot of analysts then viewed it with suspicion, calling it over-optimism on the part of the rating agency. Neither of the other two rating agencies, S&P and Fitch Ratings, followed suit.