Moody’s downgrade India’s credit ratings, just above a notch above ‘junk’ for the 1st time in 22 years

The economy of the world has struck a harsh deal on the rise of the pandemic globally. Moody’s investors services amidst this time downgraded India to a lower level of investment grade level by declining the foreign currency credit- rating from Baa2 to Baa3, and the rate could cut more further.

Moody said on Monday, “India faces a prolonged period of slower growth relative to the country’s potential, rising debt, further weakening of debt affordability and persistent stress in parts of the financial system.” They further added, “The country’s policy making institutions will be challenged to mitigate and contain.”

Moody has come up with the decision of downfall which Radhika Rao an economist, at DBS bank doesn’t thinks to be a surprise, she wrote, “The decision to retain a negative outlook, however, is a concern, as it keeps the door open for further downshift The Indian economy had slowed its growth in quarter-March which lowered to 3.1 per cent.

The centre of Monitoring Indian Economy stated this Monday that around 122 million Indians were already thrown out of their jobs in the previous month and added of coronavirus outbreak to have caused steep rise in the unemployment rate in May to 23.48 per cent.