Moody's cuts India's sovereign credit rating by one notch
India's sovereign credit rating was cut by a notch to the lowest investment grade with negative outlook by Moody's Investors Service, which cited growing risks that Asia's third-largest economy will face a prolonged period of slower growth amid rising debt and persistent stress in parts of the financial system.
The country's credit rating was downgraded to Baa3 from Baa2, according to a statement. The outlook remained unchanged. 'The decision to downgrade India's ratings reflects Moody's view that the country's policymaking institutions will be challenged in enacting and implementing policies which effectively mitigate the risks of a sustained period of relatively low growth, significant further deterioration in the general government fiscal position and stress in the financial sector,' the ratings firm said on Monday.