Ratings Bullshit

By Ramesh Akkineni

from an editorial in Financial Express

'Although India’s foreign exchange reserves, at around $138 billion, are more than the nation’s total external debt, rating agency Standard and Poor’s continues to keep the country in the non-investment grade. It recently pointed out that India is still vulnerable to political and economic factors. Thus, India remains in the low grade, its economic growth and achievements notwithstanding.'

'Standard and Poor’s have put India in the non-investment grade (BB+). Fitch has placed India in the same grade (BB+) while Moody’s India has placed the country in the investment grade (Baa3). India’s outlook is stable in the case of all the three ratings.'

the rating agencies are a herd. they are always looking at the rear-view mirror. if future potential is considered then India would be among the top.

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