Global agencies that assess credit quality seem wedded to pre-covid economic orthodoxies The coronavirus is playing many tricks by jumping across divides, changing form and hiding in plain sight.
But, its charms seem wasted on global credit rating agencies. Fitch, a small rating agency, reminded India on 27 April that any fiscal stimulus package could affect its sovereign rating, given the economy’s stressed fiscal situation.
Talk of timing. But, to be fair, it had a rationale: “Our assessment of India’s rating…would be guided by our judgement of its probable medium-term fiscal path in the post-crisis environment.
The government may tighten fiscal policy again once the pandemic is under control, but India’s record of meeting fiscal targets