Moody’s India Rating a Step Above Junk, Worst to Come: Rahul Gandhi

New Delhi: A day after global credit ratings agency Moody’s Investors Services downgraded India’s sovereign ratings as it sees challenges piled up on the country’s policy making institutions to mitigate the risks of a sustained period of relatively low growth, Congress leader Rahul Gandhi has said the worst is yet to come as the government has not supported the poor and the MSME sector. Also Read – Cyclone Nisarga: PM Modi Reviews Situation, Urges All to Take Precaution, Safety Measures

Former President of the Congress Rahul Gandhi tweeted: “Moody’s has rated Modi’s handling of India’s economy a step above JUNK. Lack of support to the poor and the MSME sector means the worst is yet to come.” Also Read – ‘Made in India’ But are ‘Made for the World’, Here Are Top 10 Quotes From PM Modi’s CII Address

Moody’s has rated Modi’s handling of India’s economy a step above JUNK. Also Read – ‘We Will Definitely Get Our Growth Back’, PM Modi Exudes Confidence

Lack of support to the poor and the MSME sector means the worst is yet to come.https://t.co/bOtH1P3pBZ

— Rahul Gandhi (@RahulGandhi) June 2, 2020

Besides, Moody’s said the Covid-19 pandemic amplifies vulnerabilities in India’s credit profile such as slower growth relative to the country’s potential, rising debt and further weakening of debt affordability and persistent stress in parts of the financial system.

Consequently, Moody’s downgraded India’s foreign-currency and local-currency long-term issuer ratings to Baa3 from Baa2.

It also downgraded India’s local-currency senior unsecured rating to Baa3 from Baa2, and its short-term local-currency rating to P-3 from P-2.

Furthermore, it kept the outlook as negative. Currently, the sovereign rating assigned to India is Baa2 with a negative outlook.