Demonetisation to have credit implications: Moody’s

Moody’s affirmed India’s sovereign rating at Baa3 and kept a positive outlook

GN Bureau | December 15, 2016


#demonestisation   #Inside India   #Moody's  



The unprecedented move to demonetise “will have short- and medium-term credit implications for every sector of the economy”, said Moody’s Investors Service.

The latest edition of Moody’s Inside India focuses on the government of India's (Baa3 positive) decision to withdraw all Rs 500 and Rs 1,000 notes. It is approximately 86 percent of all banknotes in circulation by value.

Moody's Inside India also points out that Moody's affirmed India's sovereign rating at Baa3 and kept a positive outlook on the rating because the authorities have taken important steps to strengthen the country's institutions since Moody's initially applied the positive outlook in April 2015.

However, the policy effort has not delivered clear prospects of sustained, high growth and the promise of a reduction in the government's debt burden.

On the country's banks, Moody's outlook on the Indian banking system is stable through 2017, reflecting Moody's assessment that the system is moving past the worst of its asset quality down cycle.

As for the pharmaceutical industry, Moody's and its Indian affiliate, ICRA Limited, say that Indian pharmaceutical companies will continue to seek growth through the acquisition of overseas assets over the next 18-24 months, with the aim of deepening their geographic and product diversity, and further increasing their presence in developed and emerging markets.

 

Comments

 

Other News

Developed states not adding to skill sets: Study

The most economically developed states are not adequately adding to skillsets, which may result in severe shortages of skilled manpower in the coming years, according to an ASSOCHAM-Thought Arbitrage Paper.  Maharashtra

The young dalit, angry and Azad

It’s a hot May afternoon and Connaught Place is almost deserted. But KL Mahar and Anjana Mahar, a middle-aged dalit couple, are striding briskly towards Delhi’s famed protest square, near the Jantar Mantar, to get a glimpse of Chandrashekhar Azad. Popularly called Ravan, Chandrashekhar

Tedros becomes the first African to head WHO

“Call me Tedros,” the newly elected director-general (DG) of the World Health Organisation (WHO), Dr Tedros Adhanom Ghebreyesus, told a Chinese reporter at a press conference held after he was elected on May 23. “The issue is: in Ethiopia we don’t have surnames, and also my wife o

Should there be a national test for teachers?

Should there be a national test for teachers?

Government sanctions new posts to hire cyber security professionals

The government has sanctioned 111 posts of cyber security professionals for the Indian computer emergency response team (ICERT) under the ministry of electronics and information technology (MEITY), according to a ministry official, who added that the posts were sanctioned earlier this year. 

Bhutan’s pursuit of happiness, shortage of health sub-centres in UP, and role of digitisation in IGNOU

In many ways the story of Gross National Happiness in a country is the story of Bhutan and its modern history. There are two major transition points in Bhutan’s recent history, the beginning of the monarchy in 1907, and the transition to a Constitutional monarchy in 2008, and the pursuit of happine



Video

पंजाब में हाई अलर्ट

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter