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India`s growth outlook cuts nearly 2% by Fitch rating

  • Posted By
    10Pointer
  • Categories
    Economy
  • Published
    23rd Mar, 2022

Amid the conflict between Russia and Ukraine , the rating agency Fitch has lowered India`s GDP forecast by 1.8% to 8.5%.

Context 

  • Amid the conflict between Russia and Ukraine , the rating agency Fitch has lowered India`s GDP forecast by 1.8% to 8.5%.

News Highlights

  • A sharp rise in prices of energy due to the conflict cited as the cause of such decline in growth.
  • This unexpected rise in inflation of up to 7% in the third quarter of this year will hamper the growth outlook.
  • The global growth forecast has also been lowered by 0.2% to 2.8% for  2023.
  • Earlier, Moody has also trimmed its growth outlook for the world and cut the growth outlook for India to 9.1from 9.5% for 2022.

Credit Rating agencies

  • The rating agencies grew to aid investors all over the world.
  • They provide the objective analysis and independent assessment of companies and countries that issue bonds, securities, and other debt instruments.
  • They assist the retail and institutional investors in determining whether the issuer of bonds and securities will be able to meet their obligations.
  • Standard & Poor’s (S&P) Moody’s and Fitch are the three most significant rating agencies in the world which provide information's regarding the creditworthiness of the companies.
  • AAA or Aaa is the highest rating across all the three rating agencies indicating the highest level of creditworthiness of countries and private enterprises.

 

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