Truly an India Shining update, Moody Affirms India outlook as stable, downgrades world, bank stocks rallied last week, and market participants said rating agencies were irrelevant in the face of global chaos that is underway, does this signal a short on a positive or stable rating, and a long on a downgrade?
NEW DELHI–Moody’s Investors Service said Monday it is maintaining its “stable” outlook on India’s sovereign rating as the growth slowdown and deteriorating business sentiment in the economy are likely to be temporary. The decision would give the Indian government the much-needed respite as it faces heat due to a cut in outlook to “negative” from “stable” by Standard & Poor’s in April and by Fitch last week, reflecting fading investor confidence triggered by worsening conditions in the economy.
Moody’s downgrade gives edge to safe-haven banks
Major ratings downgrades by Moody’s will further divide the world’s biggest banks based on their strength and access to cheap customer deposits. The ratings, released Thursday by Moody’s Investors Service, gave a competitive advantage to “safe-haven” banks that fund themselves with stable, low-cost customer deposits, while worsening the outlook for weaker banks that rely more on capital markets for their funding.