covid-19 impact: Fitch claims may have to relegate the country more than notch
Fitch said that his commentary did not identify specific sovereign States that might be affected by multiple levels of rebate, as it would continue to assess the credibility of sovereignty on a case-by-case basis as crises and policy responses evolved.
Fitch ratings said Tuesday that the prospect of a rapid deterioration in global sovereign ratings due to the coronavirus outbreak and sharp drop in oil prices could force many countries to downgrade their ratings in 2020.
“As we strive to assess through business cycles, the degradation of multifaceted sovereignty is more common in the economic and financial crises that are entering global economic and credit markets. The nature and speed of the epidemic and the Government’s response could significantly change access to finance.”
Fitch clarified, however, that its commentary did not identify specific sovereign States that might be affected by multiple levels of downgrading, as it continued to assess the credibility of sovereignty and the resulting crises and policy responses on a case-by-case basis.
However, conditions that in the past used to constitute the context of such a rating action seem to be merging again.”
Fitch published last week’s updated forecast for India’s global economic outlook is the lowest among other major rating agencies, such as Standard & Poor’s (3.5%) and Moody’s (2.5%).
Last December, Fitch reiterated India’s sovereign credit rating as the lowest investment rating (bbb-), with a stable outlook, saying that the country’s rating remains strong in the medium term compared to its “bbb” peers, and that its relative external resilience is balanced.