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:
http://economictimes.indiatimes.com/news/economy/indicators/sp-indias-rating-may-be-pressured-if-polls-end-in-hung-parliament/articleshow/27212589.cms
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:
http://www.business-standard.com/article/finance/moodys-lowers-central-bank-of-india-s-credit-assessment-to-b3-113121100675_1.html
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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