Standard and Poor’s sees no hit on India’s rating

November 28th, 2008 - 12:26 pm ICT by IANS  

Mumbai, Nov 28 (IANS) Global ratings agency Standard and Poor’s does not see any hit on India’s sovereign ratings because of the Mumbai terror attacks, but said this outlook depended on such an assault being an isolated case.”Based on the scenario that these attacks were an isolated case, we don’t expect there would be negative implications on India’s macro economic activities or the government’s fiscal position,” S&P’s credit analyst Takahira Ogawa said in a statement.

“In the short term, we expect there will be a slowdown of tourist arrivals and some negative impact on the foreign exchange and stock exchange markets, but such short-term effects will recede over time if there are no further attacks.”

The agency said the slowdown in arrivals could be more pronounced among business travellers to India.

S&P has a BBB long-term and A-3 short-term sovereign credit ratings on India, both of which affirm a stable outlook.

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