Moody’s Investors Service (“Moody’s”) downgraded the Government of India’s foreign-currency and local-currency long-term issuer ratings to “Baa3” from “Baa2”. It stated that the outlook remained “negative”.
Credit India rating
In order to rank the borrowers, a standardized rating scale is used which measures the expected investor loss in the event of default.
Thus, it is a bond credit rating business of Moody’s Corporation that provides international financial research on the bonds which has been issued by the commercial and government entities.
A credit rating agency (CRA) evaluates and assesses an individual’s or a company’s creditworthiness.
That is, these agencies consider a debtor’s income and credit lines to analyze the debtor’s ability to repay the debt or if there is any credit risk associated.
Indian credit rating system
Securities and Exchange Board of India (SEBI) reserves the right to authorize and regulate credit rating agencies according to SEBI Regulations, 1999 of the SEBI Act, 1992.
Context:
Moody’s Investors Service (“Moody’s”) downgraded the Government of India’s foreign-currency and local-currency long-term issuer ratings to “Baa3” from “Baa2”. It stated that the outlook remained “negative”.
Credit India rating
Indian credit rating system