Moody’s downgrades India’s sovereign rating to ‘Baa3’, maintains negative outlook, revises GDP for FY21 to -4%

Moody’s downgrades India’s sovereign rating to ‘Baa3’, maintains negative outlook, revises GDP for FY21 to -4%

• Moody’s Investors Service has downgraded India’s sovereign rating one notch to the lowest investment grade (Baa3) from ”Baa2”, with negative outlook.
• ”Baa3” is the lowest investment grade, just a notch above junk status.
• Moody’s has also revised its FY21 GDP estimate for India to 4% contraction against 0% growth projected earlier.
• However, the economic growth is projected to pick up at 8.7% in FY22 and 6% in FY23.

Points to Remember:

1. What is the GDP growth projection of India for FY21 as per Moody’s?
2. What is the GDP growth projection of India for FY22 and FY23 as per Moody’s?
3. Moody’s has revised India’s sovereign rating to which grade?

Source: Livemint