Rating downgrade by Moody's, negative outlook by Fitch likely, warns Nomura

India's Achilles heel on ratings, according to Nomura, is its parlous state of fiscal affairs

India is on the cliff’s edge and is staring at a possibility of a downgrade in its sovereign rating by Moody’s and a negative outlook by Fitch in the backdrop of coronavirus pandemic that has brought the economic activity in the country to a standstill, said analysts at Nomura in a recent report.

“In our view, there is a rising risk of an imminent downgrade by Moody’s (to Baa3 ‘stable’ from Baa2 ‘negative), bringing it on par with S&P and Fitch, both of which rate India at BBB-. We also see a risk that Fitch will change India’s outlook to