S&P cuts India's rating to Negative

Discussion in 'Economy & Infrastructure' started by sob, Apr 25, 2012.

  1. sob

    sob Moderator Moderator

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    S&P cuts India outlook to negative; markets hit | Reuters

     
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  3. sob

    sob Moderator Moderator

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    Unfortunately for people who keep track of these things were waiting for this downgrade, after a very disappointing budget and the confused signals given by the Govt.

    Also IMO the large scale fudging of figures in the Union Budget also has given a very negative image.
     
  4. asianobserve

    asianobserve Elite Member Elite Member

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    The people at these American ratings agencies really have no shame. I wonder how they can sleep at night knowing that their billions of revenues are a product of bogus mathematics... they should have prevented the 2008 US financial meltdown in the first place.
     
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  5. sob

    sob Moderator Moderator

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    Some of the reactions to this rating

    Link to the article: S&P cuts India's outlook to negative; analysts' views - The Economic Times
     
  6. sob

    sob Moderator Moderator

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    Double Post - Self Delete
     
  7. Daredevil

    Daredevil On Vacation! Administrator

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    The credit-ratings are the biggest scam responsible for 2008 financial meltdown and subprime crisis..
     
  8. sob

    sob Moderator Moderator

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    But then this rating is followed by people all over the world and this will have an impact on India. There will be downward pressure on the Rupee.
     
  9. sob

    sob Moderator Moderator

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    DD, they may have goofed on the meltdown, but the reality is that these ratings count and do matter in the international markets. You have to see the reaction from the stock market.BSE is down almost 0.9% about 145 points down
     
  10. Daredevil

    Daredevil On Vacation! Administrator

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    I agree that credit ratings are important but I don't like the double standards employed by these credit agencies when they give good credit ratings to countries on death bed (like UK) while giving bad credit ratings to countries that grow at a faster pace.
     
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  11. asianobserve

    asianobserve Elite Member Elite Member

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    These American ratings agencies are way out of their league. Don't believe everything they said.
     
  12. asianobserve

    asianobserve Elite Member Elite Member

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    They matter to Wall Street types because the "opinions" (which is what they are actually) of this ratings agencies provides good excuse for market volatility, which is what funds, investment banks and speculators want. I suspect there maybe some connection between people in these ratings agencies and financiers/speculators...
     
  13. Blackwater

    Blackwater Veteran Member Veteran Member

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    Does any Tom,Dick and Harry Credit rating Company matters??????
     
  14. Yusuf

    Yusuf GUARDIAN Administrator

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    Dollar has shot up :(
     
  15. SLASH

    SLASH Senior Member Senior Member

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    The path of reforms should be slow an steady. We do not need overnight billionaires. Growth should be inclusive to reduce income inequality. Though I must say this UPA term has been horrible as far economic reforms are concerned.
     
  16. pankaj nema

    pankaj nema Senior Member Senior Member

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    Good ; we will NOT see Wasteful schemes such as Right to free food and Right to Education

    The govt has been throwing Good money in bad schemes

    Fiscal deficit has finally caught up with this govt

    Fiscal discipline has to be maintained
     
  17. sob

    sob Moderator Moderator

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    Yes when the cost of capital goes up then the ratings do matter.
     
  18. sob

    sob Moderator Moderator

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    Bouncer from the FM

    He is very clever with words. By association the whole blame is on the opposition and other parties and not on the mismanagement this Govt. has been doing for the last 8 years.
     
  19. sob

    sob Moderator Moderator

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    Rather Bold Headlines from Firstpost

    S&P subtext: We don’t believe you Mr FM; so what’s next? | Firstpost

     
  20. sob

    sob Moderator Moderator

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    The main crisis that Pranab Mukherjee faces today is the complete lack of confidence people are beginning to have in him and his Govt. The fudging of numbers in two consecutive Budgets has not helped his case either.

    Glaring truth which sticks in the face from the above article
     
  21. sob

    sob Moderator Moderator

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    For the economists the question about the downgrade was not why but when it would happen. the obvious impact on the Rs. and it;s implications on our oil import bill is something which we cannot escape from.

    ‘S&P’s India downgrade not a surprise but a dampener’ | Firstpost

     

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