Terror attacks have no direct implications on India's sovereign rating: S&P
Announcement / Singapore Nov 28, 2008, 11:51 IST
Standard & Poor's Ratings Services today said it does not believe the terrorist attacks in India will have a direct effect on the sovereign ratings on India (BBB-/Stable/A-3), provided they are an isolated case.
"Based on the scenario that these attacks were an isolated case, we don't expect there would be negative implications on India's macroeconomic activities, or on the government's fiscal position," Standard & Poor's credit analyst Takahira Ogawa said. "In the short term, we expect there will be a slowdown of tourist arrivals (particularly business travelers to India), and some negative impact on the foreign exchange and stock exchange markets, but such short-term effects will recede over time if there are no further attacks."
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