Home > Business > PTI > Report

Sinha slams 'junk' India rating

July 10, 2003 13:51 IST

External Affairs Minister Yashwant Sinha on Thursday discounted the 'junk' grading of the rupee by rating agencies like Moody's and S&P, saying it was based on a few 'weak' parameters rather than the overall macro-economic picture.

"It's very unfortunate to put India in that category. They (rating agencies) should look at the overall macro-economic picture and not pick up one or two parameters, which are weak," Sinha said in New Delhi.

Recalling the junk rating assigned to India by Moody's and Standard and Poor's during his stint in the North Block, Sinha said: "Even as finance minister, I was not directly concerned about the ratings."

"Given the strong macro-economic position, it has not come in the way of India's trade and business," Sinha added.

S&P last week reaffirmed India's currency rating as 'junk' grade 'bb+' saying the action was constrained by rising public debt and growing fiscal inflexibility.

Painting a negative outlook for the economy, S&P had said the government's debt burden may continue to rise rapidly over medium term, especially if the GDP were to decelerate.

"We have not raised any sovereign bonds. So where is the question of that rating," Sinha asked.

Article Tools

Email this Article

Printer-Friendly Format

Letter to the Editor

Related Stories

Column: GP on Indo-Pak talks

People Who Read This Also Read

US tightens visa rules

Army knew about Hill Kaka

Foreign origin:NCP softens stand

© Copyright 2003 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.

Copyright © 2003 rediff.com India Limited. All Rights Reserved.