India may be the first BRIC nation to loss its investment grade rating — a blow to both its prestige as a growth economy and perhaps its ability to raise money. S&P shocked may sovereign investors as it produced a report, “Will India Be the First BRIC Fallen Angel?” which said:
[T]he Indian government’s reaction to potentially slower growth and greater vulnerability to economic shocks could largely determine whether the country can maintain an investment-grade rating or become the first “fallen angel” among the BRIC nations (which also comprise Brazil, Russia, and China). The “BBB-” long-term sovereign credit rating on India is currently one notch above speculative grade. “Setbacks or reversals in India’s path toward a more liberal economy could hurt its long-term growth prospects and, therefore, its credit quality,” said Standard & Poor’s credit analyst Joydeep Mukerji.
If India does lose its current rating, S&P could turn to other BRIC nations like Brazil and Russia to see if they share enough in common with India to be reexamined.
Douglas A. McIntyre
Top Gaining Stocks
Top Losing Stocks