New Delhi, Nov. 15 -- A day after Prime Minister Narendra Modi claimed that the fundamentals of the economy remain strong, rating agency Moody's Investors Service on Friday, 8 November, changed its outlook for India's sovereign rating (Baa2) from stable to negative, saying that the domestic economic downturn could be structural.
The agency's action does not amount to a rating downgrade, but comes as a caution against policy inaction. Moody's credit rating of Baa2, the second-lowest investment grade score, is better than those of other agencies, such as S&P and Fitch, who have assigned the lowest investment grade to India with a stable outlook.
Countering Moody's views, the Union finance ministry in a statement said that India's potential ...