Indias ratings already reflect Fed tapering fears - Fitch Indias narrowing current account deficit will not be enough to shield the country from pressures tied to Fed tapering, says Fitch Ratings. However, Fitch adds the spillover effects of the Indian rupees weakness have not significantly hurt Indias creditworthiness and will therefore not trigger any ratings action at this point. (Indias ratings) already incorporate both the sovereigns vulnerabilities and tolerance for volatility in global financial market conditions, Fitch said. Fitch adds Indias economy has not lost much momentum on the back of resilient agriculture and exports, predicts economic growth of 4.8 percent in 2013/14 and 5.8 percent in 2014/15. Fitch also notes Indias fiscal deficit remains under pressure, especially ahead of the general elections due next year, but says the government is likely to clam down heavily on spending. Fitch rates India at BBB-minus, the lowest investment grade rating. It revised its outlook for the country to stable from negative in June.
Posted on: Thu, 21 Nov 2013 06:14:33 +0000
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