Wednesday, December 11, 2013

Hung Parliament Could Sink India Credit Rating: S&P

Credit rating agency Standard & Poor's has said that if India's elections result in a hung parliament, then this could result in a sovereign credit rating downgrade:

Thanks, Kejriwal. The Indian voters will have only themselves to blame if their failure to get strongly behind a particular candidate results in a sovereign rating downgrade to junk status. Who will they scream at then, once they're stuck with a hung parliament? Pranab Mukherjee maybe, since he'll be in charge with Presidential Rule?

Moody's has just lowered Central Bank of India's credit rating from b1 to b3:

Just imagine - a sovereign rating downgrade combined with a US Fed taper will hit India like twin tsunamis. The Perfect Storm. The currency would plunge through the floor.

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