‘India deserves a better rating’

Source: The Hitavada      Date: 01 Mar 2017 09:16:15


NEW DELHI,

Feb 28,

(PTI),

IN A much-needed shot in the arm, global think-tank OECD on Tuesday pitched for a rating upgrade for India and said global rating agencies had become “overtly cautious” and conservative in not revising India’s rating for last 14 years.
“I believe India deserves a
better rating,” said Angel Gurria, Secretary General of the Organisation for Economic Cooperation and Development (OECD).


He said the rating could be changed to “neutral” and then
“positive”. “With the kind of reform programmes that you are putting out they can’t fail to notice so
this should have.”


On why India’s rating has not been changed in the last 14 years despite it being a very different country in these years, Gurria said, “Well, let me try a couple of considerations. First what the Rating agencies do? Rating
agencies calculate the likelihood of default on a borrowers credit. India is in investment grade, in the lower rung.”
He further said: “Do I believe that the rating agencies today should increase India’s rating? Absolutely. And I think they will.” The rating agencies were cautious because “they got it so wrong with the (global economic) crisis”.