Moody's Analytics says report reflects its view

Moody’s Analytics on Thursday stood by its report that had asked Prime Minister Narendra Modi to keep his Bharatiya Janata Party (BJP) members in check or risk losing global credibility and said it was part of its ‘economic outlook series’, a day after the government had berated it.

“The report was published by and is the view of Moody’s Analytics as part of its economic outlook series,” a Moody’s Analytics spokesperson said in an emailed statement. “The report included a section observing political developments in the context of their potential economic impact, and did not advocate any political agenda or perspective,” he added.

The government on Wednesday issued a statement dismissing report of Moody's Analytics, published last Friday, saying it was the personal opinion of a junior analyst which was passed off as a commentary on India by a rating agency “by the media to buttress the narrative it wants to portray”.

The strongly worded statement by the government had further said “it is surprising that sections of the Indian media failed to make a distinction between Moody's Analytics which is merely a data and analytics firm and Moody’s Investor Services, which provides ratings services.” In the same breath, it said “the opinion of a Junior Associate Economist employed with Moody's Analytics has been splashed all across implying it as the opinion of Moody's Analytics.” Moody’s Analytics said it “provides economic research and analysis and is a separate company from Moody's Investors Service, the ratings agency."

The October 29 report titled 'Dismal Scientist - India outlook: Searching for Potential' authored by Faraz Syed, Associate Economist of Moody's Analytics, had stated that "While Modi has largely distanced himself from the nationalist jibes, the belligerent provocation of various Indian minorities has raised ethnic tensions.

"Along with a possible increase in violence, the government will face stiffer opposition in the upper house as debate turns away from economic policy. Modi must keep his members in check or risk losing domestic and global credibility."

While releasing the report on Friday, the firm had said that "if sourcing or referencing any contents from this publication, please quote Moody's Analytics".