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With reference to the India’s sovereign rating outlook, consider the following statements:
1. Last year, Moody’s downgraded India’s sovereign rating from ‘Baa2’ to ‘Baa3’, the lowest investment grade.
2. Recently Moody’s changed India’s sovereign rating outlook from ‘negative’ to ‘stable’.
Which of the statements given above is/are correct?
  • a)
    1 only
  • b)
    2 only
  • c)
    Both 1 and 2
  • d)
    Neither 1 nor 2
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
With reference to the India’s sovereign rating outlook, consider...
Asserting that India’s downside risks from negative feedback between real economy and financial system are receding, ratings agency Moody’s changed India’s sovereign rating outlook from ‘negative’ to ‘stable’, while affirming the country’s foreign-currency and local-currency long-term issuer ratings at Baa3.
  • Last year, Moody’s downgraded India’s sovereign rating from ‘Baa2’ to ‘Baa3’, the lowest investment grade, saying there will be challenges in implementation of policies to mitigate risks of a sustained period of low growth and deteriorating fiscal position.
  • The outlook on the rating was kept negative.
  • Since overseas borrowing costs are tied to a country’s rating and the agencies’ outlook on the nation, an upgrade usually helps in lowering borrowing costs for the government as well as the corporate sector.
  • With chances of default receding and improvement in overall debt service ability, foreign investors take comfort in subscribing to government and corporate bonds at lower rates.
  • Hence both statements are correct.
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With reference to the India’s sovereign rating outlook, consider the following statements:1. Last year, Moody’s downgraded India’s sovereign rating from ‘Baa2’ to ‘Baa3’, the lowest investment grade.2. Recently Moody’s changed India’s sovereign rating outlook from ‘negative’ to ‘stable’.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?
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With reference to the India’s sovereign rating outlook, consider the following statements:1. Last year, Moody’s downgraded India’s sovereign rating from ‘Baa2’ to ‘Baa3’, the lowest investment grade.2. Recently Moody’s changed India’s sovereign rating outlook from ‘negative’ to ‘stable’.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? for Current Affairs 2024 is part of Current Affairs preparation. The Question and answers have been prepared according to the Current Affairs exam syllabus. Information about With reference to the India’s sovereign rating outlook, consider the following statements:1. Last year, Moody’s downgraded India’s sovereign rating from ‘Baa2’ to ‘Baa3’, the lowest investment grade.2. Recently Moody’s changed India’s sovereign rating outlook from ‘negative’ to ‘stable’.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for Current Affairs 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for With reference to the India’s sovereign rating outlook, consider the following statements:1. Last year, Moody’s downgraded India’s sovereign rating from ‘Baa2’ to ‘Baa3’, the lowest investment grade.2. Recently Moody’s changed India’s sovereign rating outlook from ‘negative’ to ‘stable’.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?.
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