Expected downgrade

In the current negative economic scenario, credit rating agency Moody’s has done the expected: it has downgraded the outlook for Indian banks, indicating volatility and uncertain conditions in the coming 12 to 18 months. On the other hand, the other leading agency, Standard and Poor’s (S&P), has indicated a stable outlook for Indian banks. S&P has also simultaneously changed the way it calculates country risk, clarifying that the resultant upgrade by a notch for India should not be seen as a rating upgrade.

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