Demand has fallen significantly in the US, which accounts for around 30 per cent of crude oil consumption and meets 60 per cent of its demand through imports.
If the fiscal position of the United States deteriorates further or if the political gridlock becomes more entrenched, then that could lead to a downgrade.
S&P's specific concern is that: "US policymakers might not reach an agreement on how to address medium- and long-term fiscal challenges."
In the wake of the sharp downturn in the valuations of mortgage-backed securities last year, financial firms justified their investment in these non-transparent instruments on the triple ratings accorded to them.
In an interview with BS, Roopa Kudva appears most excited about climate change. Another area is the grading of listed equities which, according to her, is an extension of IPO-grading.
Global rating agency Standard and Poor's Asia Pacific chief economist Subir Gokarn has been appointed as RBI deputy governor in place of Rakesh Mohan who quit months ahead of his retirement.
The government is also approaching the other two major rating agencies - Moody's and Fitch - to explain its fiscal strategy, the economic situation and the outlook.
The post of deputy governor (for economist) in RBI has been lying vacant since mid-June after Rakesh Mohan quit months ahead of his retirement.
Two mid-sized Indian companies - Rolta India and Nestle India have been named among 300 top challengers to the world's leading blue chip firms, complied by leading global index provider Standard and Poor's.
Economists are of the opinion that interest rates are likely to remain stable or moderate this year.
Leading index provider Standard & Poor's on Thursday announced the launch of currency indices - Indian Rupee index and Chinese Renminbi index. Global investors would get access to the currencies of the two emerging economic superpowers, it will also serve as a reliable and relative benchmark for currency performance. The indices will replicate the performance of the Chinese Renminbi & the Indian Rupee versus the US Dollar. The indices will also have an excess return version.
The double whammy saw the Bombay Stock Exchange's benchmark Sensex fall 3 per cent or 456.39 to close at 13,469.85 even as global rating agency Standard and Poor's suggested it might lower India's sovereign rating of BBB- (investment-grade status) due to the country's deteriorating credit profile over the last 12 months.
Asian banks, especially the ones engaged in realty and home segment, will be significantly affected due to volatality in the global markets.
Global rating agency Standard and Poor's said on Friday large scale acquisitions may put pressure on the financial profile of Indian corporates notwithstanding the positive impact of such transactions on businesses.
The Indian economy is expected to be adversely affected by a surge in inflation fuelled by energy and commodity prices. Despite signs of growth slowing down from the last year, the Reserve Bank of India (RBI) has already hiked interest rates twice in June to deal with inflationary pressures and may well do so again, S&P said in a statement.
However, the US recession could 'lead to a decline in capital inflows and weaker exports particularly of services. This could affect the capital and current account and put pressure on the balance of payment surplus,' says a Standard & Poor's report.
Standard and Poor's on wednesday said India was largely insulated from problems posed by the financial crisis and the slowdown in the United States, but added that it had to grapple with its own set of challenges, the chief among them being inflation. While the economic growth is expected to slow down this year, policymakers are grappling with a more complicated situation, which could see the subsidy bill rise as the country prepares to go to polls in the next 12 months.
Standard and Poor's has launched two new investable Shariah indices for the Indian equities market.
India has emerged as the 4th biggest loser amongst the emerging markets in January, after a loss of nearly 16%, according to S&P update.
The Reserve Bank of India's tight monetary policy is expected to moderate India's economic growth rate to 8.1-8.6 per cent in 2008, against 8.5-9 per cent in 2007, Global rating agency Standard and Poor's said on Wednesday.
Global rating agency Standard and Poor's on Monday cautioned that the credit quality of Mukesh Ambani controlled Reliance group's flagship company RIL might "weaken"
British telecom giant Vodafone could face a downgrade in its credit rating by Standard and Poor's if its proposed bid for Hutchison Essar Ltd exceeds $19 billion, a media report said in London.
Giving another boost to the great Indian growth story, seven domestic firms have been named as the emerging global challengers to the world's leading blue chips by the global equity research major Standard and Poor's.
Even as news of a possible settlement between the Ambani brothers are doing the rounds, global rating agency Standard and Poor's on Friday
India and Pakistan have posted the highest gains among developing Asia-Pacific equity markets, posting much stronger returns than those in 2004
There are more near-term global draggers in store for the domestic stock market, as the central banks across the US, Japan and Europe are likely to further hike their benchmark interest rates
Ahead of the Budget, global rating agency Standard and Poor's has warned India may not be able to achieve the fiscal responsibility and budget management target of axing fiscal deficit and projected a lower growth of 6 per cent this fiscal.
Standard and Poors', the international rating agency, has affirmed its 'BB/B' foreign currency and 'BB+/B' local currency sovereign ratings for India with negative outlook.
International credit rating agency Standard and Poor's has voiced concern over the fiscal deficit of the central and state governments even as it expressed happiness over the strong economic growth momentum.
Economist Joydeep Mukherji, who tracks India and China for Standard and Poor's, has joined the minority of economists who believe that with a little more effort India can overtake the Chinese economy.\n\n\n\n
Rating agency Standard and Poor's could upgrade Greece's rock bottom credit rating "pretty quickly"
The broad contours of their assignment are expected to be making independent assessment of recovery prospects, and estimating haircuts for restructuring cases.
BJP's reversals in rural Gujarat has prompted many policy watchers to predict that the Budget would have incentives for the agriculture sector and the rural economy.
India's macro finances are getting into good shape.
The loss of income has severely dented the loan repayment ability of small borrowers
A strengthening dollar overseas also kept the rupee under pressure amid demand from importers. Goldman Sachs followed JP Morgan, HSBC and Nomura in cutting India's economic growth forecast and also said it expects the rupee to touch 72 against the dollar in the next six months.
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