INTRODUCTION
Standard & Poor's (S&P) is an American financial services company..With offices in 23 countries and a history that dates back more than 150 years, Standard & Poor’s is known to investors worldwide as a leader of financial- market intelligence. Today Standard & Poor’s strives to provide investors who want to make better informed investment decisions with market intelligence in the form of credit ratings, indices, investment research and risk evaluations and solutions.
S&P warned to india for junk rating status
The international ratings agency had warned that India may lose its "investment grade" and may become the first "fallen angel" among BRICS nations.
All foreign investors make their investment decisions based on credit ratings given by rating agencies, whether you like it or not. Most of them are not allowed to invest their money in a country that has a junk rating. Will you, for example, ever invest your money in Fixed Deposit scheme of a junk rated company? Even if the company publishes a convincing report rebutting the rating agency?
so a s&p junt rating for india will fully effect on GDP of india...
A/C to FINANCE MINISTERY OFFICIALS OF INDIA;------
Hitting out at the rating agency Standard & Poor, India has said that its methodologies were not transparent and the country's economy was better off than the peers it was bracketed with.
"We are not happy with what they are saying...The process they follow is not very transparent..They have some hidden criterion which they have not been able to explain to us," said R Gopalan, secretary, department of economic affairs.
The rating agency had on Monday warned that India could be the first BRIC nation to lose investment-grade rating citing economic slowdown and political roadblocks to policy-making.
"I do not know if they have instituted a system of advance advance warning," he said adding that thefinance ministry will soon have a telecon with the agency to assert its point that country's fundamentals continued to remain strong.
"We believe there is a need to engage with them to emphasise on various parameters including the steps the government had taken to boost growth, to contain deficit and to tackle the external situation," he said.
Finance ministry officials had held intensive discussions with S&P representatives in April but the agency had cut outlook on the country's sovereign rating of 'BBB-' to negative from stable.
"We had asked them to share with us their findings before the ratings are assigned so that we can explain our point of view. We don't seem to be getting transparent answers," he said.
Finance minister Pranab Mukherjee had on Monday rejected the S&P report and expressed confidence that there would be a turnaround in economic growth prospects in the coming months.
"You cannot judge us on a few parameters. We think we are in a much better condition than they think we can be," Gopalan said, who has just returned from a roadshow on the qualified foreign investor scheme in the Gulf.
He said private equity investors and sovereign wealth funds in the region were willing to bet on India and were looking to increase allocations to India. Investors queried the government officials on tax provisions including the retrospective changes made in the budget as to how they
S&P warned to india for junk rating status
The international ratings agency had warned that India may lose its "investment grade" and may become the first "fallen angel" among BRICS nations.
All foreign investors make their investment decisions based on credit ratings given by rating agencies, whether you like it or not. Most of them are not allowed to invest their money in a country that has a junk rating. Will you, for example, ever invest your money in Fixed Deposit scheme of a junk rated company? Even if the company publishes a convincing report rebutting the rating agency?
so a s&p junt rating for india will fully effect on GDP of india...
A/C to FINANCE MINISTERY OFFICIALS OF INDIA;------
Hitting out at the rating agency Standard & Poor, India has said that its methodologies were not transparent and the country's economy was better off than the peers it was bracketed with.
"We are not happy with what they are saying...The process they follow is not very transparent..They have some hidden criterion which they have not been able to explain to us," said R Gopalan, secretary, department of economic affairs.
The rating agency had on Monday warned that India could be the first BRIC nation to lose investment-grade rating citing economic slowdown and political roadblocks to policy-making.
"I do not know if they have instituted a system of advance advance warning," he said adding that thefinance ministry will soon have a telecon with the agency to assert its point that country's fundamentals continued to remain strong.
"We believe there is a need to engage with them to emphasise on various parameters including the steps the government had taken to boost growth, to contain deficit and to tackle the external situation," he said.
Finance ministry officials had held intensive discussions with S&P representatives in April but the agency had cut outlook on the country's sovereign rating of 'BBB-' to negative from stable.
"We had asked them to share with us their findings before the ratings are assigned so that we can explain our point of view. We don't seem to be getting transparent answers," he said.
Finance minister Pranab Mukherjee had on Monday rejected the S&P report and expressed confidence that there would be a turnaround in economic growth prospects in the coming months.
"You cannot judge us on a few parameters. We think we are in a much better condition than they think we can be," Gopalan said, who has just returned from a roadshow on the qualified foreign investor scheme in the Gulf.
He said private equity investors and sovereign wealth funds in the region were willing to bet on India and were looking to increase allocations to India. Investors queried the government officials on tax provisions including the retrospective changes made in the budget as to how they
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