Rating Reprieve, But Risks Still Loom in India - India Real Time - WSJ

Rating Reprieve, But Risks Still Loom in India - India Real Time - WSJ:

"

Sudarsan Pattnaik

A coin made of sand with Lakshmi, the Hindu goddess of wealth in Puri, Orrisa

For several months now, India has been facing the threat of a sovereign downgrade, a prospect that could tip the country’s already teetering credibility among foreign investors over the edge.

A nose-diving rupee has aggravated India’s troubles, bringing it dangerously close to non-investment grade, or junk status, which effectively indicates the country’s weak ability to repay its debt.

Higher risk associated with debt would mean foreign investors would be compelled to review their investments in the country and local companies would also find it costlier to raise debt."

'via Blog this'