(a) whether the International Credit Agency Standard and
Poors and Moodys downgraded India`s rating;
(b) if so, the level to which India has been downgraded
and the reasons for it; and
(c) the steps the Government is taking to prevent further
downgradation by International Credit Rating Agencies?
MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI BALASAHEB VIKHE PATIL)
(a) & (b) : Standard & Poor`s (S&P) on August 7, 2001,
affirmed its BB long-term and B short-term foreign currency
sovereign credit rating and`A-3`short term local currency
sovereign credit on India.The rating agency revised India`s
long-term local currency rating to `BBB (minus)` from `BBB`.
The outlook on both long-term ratings was revised from stable
to negative. S&P vide their press release dated
November 20, 2001, has affirmed the above ratings. The
outlook remains negative.
Moody`s Investors Service on August 8, 2001,
revised the outlook for India`s Credit Rating to stable from
positive for the Ba2 foreign currency country ceiling. The
outlook has also been revised to negative from positive for
the Ba2 ratings assigned to domestic currency debt.
The above revisions are, inter-alia, based on
S&P`s and Moody`s perceptions about public finances and
the deceleration in GDP growth.
(d) Government has initiated several measures to improve
the fiscal situation of the Centre and States.