S&P ups India's outlook to 'stable' from 'negative' - Moneylife

S&P ups India's outlook to 'stable' from 'negative' - Moneylife

A mainstream financial newspaper captioned today’s(September 27, 2014)
editorial “Standard & Poor’s Upgrades Itself”. The international rating
agencies will continue to follow ‘blow hot, blow cold’ approach to satisfy
their masters. Allow me to recall my November 19, 2013 comment in response to a
“The international rating agencies were never kind to India. The ratings
have always been guided by external parameters common for the sectors
irrespective of strengths and weaknesses specific to countries rated. Of late,
some agencies have started openly judging India’s ‘political climate’ as also
commenting on structural aspects of institutions which have evolved based on
the need for economic development.
High time rating agencies, or for that matter whosoever
judges the performance of economies, changed their parameters to factor in the
inherent strengths and weaknesses of nations. Countries like India with huge
resources including human resources and much less consumption needs as compared
to ‘developed’ countries and nations which are permanently dependent on outside
markets for sustenance, while perennially building up capacities for
unproductive purposes like war and space exploration using borrowed funds, are
measured on the same scale.
Viewed in this
context, time is opportune for India
to think in terms of setting up a rating agency of international standard which
will understand India and
advise stakeholders about the health of domestic financial institutions and the
financial institutions and governments abroad with which India has
dealings. Agencies like Standard and Poor and Moody’s are doing their work
within their limitation and even they would be benefited if an internationally
acceptable rating agency comes into being in India.”

G Warrier, Mumbai


Popular posts from this blog



The King of Ragas: Sankarabharanam