As expected the front page of all the financial news papers covers the story of S&P negative on India . I was just trying to figure out the implications of S&P outlook downgrade to India, The agency retained the rating at BBB-, but said it was changing its outlook from stable to negative. let’s try to figure out the impact :-

  • Well the rating is BBB- S&P just gone to pessimist and revised its outlook for India country rating negative.
  •  BBB- is the last rung in the ratings grade of S&P ,downgrade from here meaning India will be having speculative grade rating. Continue reading

In the past months lot of country ratings were reviewed in the European region as well as across Asia, I tried to figure out how they are being monitored in the mean while came across an interesting paper on the risk ascertain by the International Banks.

The risk had been divided on the basis of 5 ratings that are issued to access country risk:

  • The Country average ratings (CAR)
  • The Maximum ratings for corporate (MRC)
  • The Maximum rating for Banks (MRB)
  • The convertibility rating
  • The Sovereign ratings   Continue reading
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