Moody’s Investors Services downgraded India’s sovereign ratings as it sees challenges piled up on the country’s policy-making institutions to mitigate the risks of a sustained period of relatively low growth.
Rahul Gandhi. (File Photo: IANS)
Congress leader Rahul Gandhi on Tuesday launched an attack on the Modi government over the economic crisis.
His remarks came a day after the global credit rating agency Moody’s Investors Services downgraded India’s sovereign ratings as it sees challenges piled up on the country’s policy-making institutions to mitigate the risks of a sustained period of relatively low growth.
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On this, the Congress leader said that the worst is yet to come as the government has not supported the poor and the MSME sector.
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In a tweet, Rahul Gandhi had referred to a media report about the Moody’s downgrading India’s rating and said, “Moody’s has rated Modi’s handling of India’s economy a step above JUNK.”
“Lack of support to the poor and the MSME sector means the worst is yet to come,” he added.
Yesterday, Moody’s Investors Service said that the Reserve Bank of India’s decision to extend the moratorium on loan repayment until September 1 is credit negative for the liquidity profile of non-banking finance companies (NBFC).
The agency said that NBFCs manage their liquidity primarily by matching outflows, mainly debt repayments, with inflows from customer loan repayments. The moratorium on customer loan repayments, initially effective from March 1, has led to a significant decline in cash inflows and has adversely impacted the liquidity of NBFCs.
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