While major credit rating agencies have well-defined frameworks for deciding on sovereign ratings, the methodology of ultimately arriving at the final award remains a black box
While this downgrade will not affect the sovereign as it does not borrow overseas, it will however affect Indian companies borrowing from abroad
The rating agency said that this downgrade while taken in the context of Covid-19 pandemic has not been driven by its impact
Bank lending needs to be supported by government spending - the fiscal stimulus
Moody's rating on the government of India is Baa2 with negative outlook
India's Achilles heel on ratings, according to Nomura, is its parlous state of fiscal affairs
Moody's expected India's economic growth to recover to 6.2 per cent in 2021
Agency says weaknesses in JSW's credit profile, such as its exposure to weakening steel demand for manufacturing and volatile material costs, have left it vulnerable to shifts in market sentiment
Nifty earnings had barely started to grow till Q3FY20 and then the Covid-19 pandemic happened. Now there is a question mark on whether Nifty earnings will grow beyond single digits in FY20 and FY21
Moody's revises outlook for ICICI Bank and Axis Bank to negative
Stating that asset quality will deteriorate, Moody's said a sharp decline in economic activity and a rise in unemployment will lead to a deterioration of household and corporate finances
Auto loan delinquencies to rise in the coming months
South Africa slipped into recession during the final quarter of 2019
Moody's said, at the 2020 estimated growth rate, a sharp fall in incomes in India is likely, further weighing on domestic demand and the pace of recovery in 2021.
Over the next few months, Moody's expects job losses across countries to accelerate
Financial market volatility is at levels that last occurred during the global financial crisis, said Moody's
The firm has already begun the process in a number of the hardest hit sectors such as airlines, cruise and oil firms, but the moves are about to ratchet up, two of the firm's top analysts told Reuters
In India, the number of infected cases stood at 125, as per union health ministry log.
Moody's said oil price shock adds to growth and fiscal pressures for exposed sovereigns.
The rating action concludes the review with direction uncertain that was initiated on Yes Bank's ratings on 06 March 2020. Ailing private sector bank was placed under moratorium on March 5, 2020.