The reason for both the officials being sent on leave is the same - an anonymous complaint received by the market regulator against the agency.
It is not just a mere coincidence that the change in the government's response happened when Chidambaram took charge.
India's growth outlook has weakened sharply this year, with a crunch that started with the non-banking finance institutions spreading to retail businesses, car-makers, home sales and heavy industries.
'It may sound like sacrilege, but does it really matter if the global raters downgrade India for fiscal slippage?' asks Tamal Bandyopadhyay.
The agency said, 'The downgrade reflects Moody's expectation that China's financial strength will erode somewhat over the coming years, with economy-wide debt continuing to rise as potential growth slows.'
The report further pointed out that the current rupee volatility will be 'less damaging than in 1991, when low reserves and a widening current account deficit prompted India's last balance of payment crisis'.
Moody's said the government will face challenges in achieving its deficit target for the fiscal year ending March 2021, amid persistent structural and cyclical headwinds to growth.
Although, Moody's expects that global and domestic factors, including potential shocks in agriculture, could keep India's growth below trend for the next few quarters.
Some banks called the Moody's move backward looking, arbitrary and unwarranted.
Some banks called the Moody's move backward looking, arbitrary and unwarranted.
The outlook for India's rating would improve if fiscal, inflation and infrastructure metrics get better, a global report said.
The Union government will gain close to Rs 1.6 lakh crore in additional revenues this fiscal from a record hike in excise duty on petrol and diesel that has pushed the total incidence of taxation on auto fuels to 70 per cent of the price. Late on Tuesday evening, the government hiked excise duty on petrol by Rs 10 per litre and that on diesel by Rs 13 a litre to mop up gains arising from international oil prices falling to a two-decade low.
Moody's Investors Service has said that although there is only a moderate direct impact of an expected European recession for most Asian (ex-Japan) corporate issuers of debt, indirect risks are rising on account of weak exports.
International credit ratings agency Moody's Investors Service changed its outlook for India's banking system to negative from stable due to concerns that an increasingly challenging operating environment will adversely affect asset quality, capitalisation, and profitability.
India's fiscal deficit and inflation outlook could prevent any upgrades in the country's sovereign rating, even as the economy is headed for recovery
Government asks banks to furnish capital, ratings and NPA details.
Moody's cited a likely rise in the bank's non-performing assets in the near future as one of the reasons for the downgrade.
All the banks mentioned here have balance sheet size greater than Rs 50,000 crore (Rs 500 billion).
Though the NDA government had been trying to privatise 20 companies, a decision for which was taken in 2017, and included national carrier Air India, the investor community evinced little enthusiasm for any of them. Now, with an in-principle approval for privatisation of BPCL, CCI and SCI, the government has taken the plunge again.
Moody's said the negative outlook reflected uncertainty over the refinancing of Macrotech's (formerly Lodha Developers) upcoming debt maturities.
While foreign currency rating was retained at Baa2 -- the second-lowest investment grade score -- Moody's also projected a fiscal deficit of 3.7 per cent of gross domestic product in the year through March 2020, a breach of the government's target of 3.3 per cent.
The NSE 50-share after moving between 10,309.85 and 10,261.50 on alternate bouts of selling and buying, finished at 10,298.75, with paltry gains of 15.15 points, or 0.15 per cent.
Credit rating agencies have been raising red flag over high debt to GDP ratio of India.
If the precautions are not taken and guidelines are not followed properly, there can be chances of spike in cases, the government said.
The country's GDP grew at the fastest pace in seven quarters at 7.7 per cent in the January-March period, retaining the fastest growing major economy tag on robust performance by manufacturing and service sectors as well as good farm output.
Market sentiment suffered a jolt after other Asian markets closed with widespread losses and European markets dropped in early trade
Despite the increased business risks, the rating agency affirmed Baa2 ratings, three notches down from the highest grade, with a stable outlook for RIL, Moody's Investor Service said in its weekly outlook.
The scrip was the worst hit among the front-line companies on both the indices during the day.
In a new report released in Dubai on Monday, the rating agency said that the negative outlook reflects the rating agency's view of fundamental credit conditions in the industry over the next 12-18 months.
On Aug 11, the Chinese central bank surprised markets by devaluing the yuan by nearly 2 per cent.
In its quarterly monetary policy review on January 29, the RBI had announced a 0.75 per cent raise in the cash reserve ratio, or the amount banks need to park with the RBI, from 5 per cent earlier.
Moody's expects growth in G-20 advanced countries to be stable at 1.8 per cent for 2016.
While Shah is a former analyst at the Moody's Investor Service, Shankar who has already pleaded guilty is a former proprietary trader at Schottenfeld Group in New York.
Although its ratings outlook for foreign currency and local currency is stable, Moody's outlook for the country says it faces challenges in macroeconomic management and a backlog of structural reforms. "India's ratings are based on the assessment of the country's moderate levels of economic and institutional strength, that are supported by a rapidly growing and well-diversified economic structure," said Aninda Mitra, VP and senior analyst at Moody's.
Global rating agency Moody's Investor Services in its latest report said the strong fundamentals, combined with upturn in savings and investment as well as rising rate of potential growth, supports the Indian government's foreign currency sovereign medium investment grade (Baa3) bond rating and local currency speculative grade (Ba2) bond rating.
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The rupee had slumped to a record low of 59.9850 rupee to the dollar on Thursday, as the country's record high current account deficit is exacerbating its vulnerability in an emerging market rout.
Rangarajan said that growth has many dimensions to it.
A day after Manmohan Singh won the trust vote, sans Left support, rating agencies Moody's Investor Services and Icra said the insurance sector will get a huge boost if the government paves the way for greater foreign participation in Indian companies.
The incoming government will have to encourage private investments, bring down cost of capital
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