Finance Minister Reels off Statistics, says Data call for Rating Upgrade

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Citing sound macroeconomic parameters, finance ministry officials on Tuesday pitched for a rating upgrade in their meeting with global rating agency Fitch, reported PTI. The officials also sought to understand how it rates sovereigns as rating agencies have been denying an upgrade citing stress on balance sheets of both banks and corporates. The ministry also explained the representatives strict fiscal discipline that the government intends to follow, besides various steps taken by the government in the recent Budget to prop up growth. 

The Fitch officials told the government that it focuses more on structural reforms with medium- to long-term impact to change its ratings view, a finance ministry official said. Fitch has investment-grade BBB- sovereign credit rating with stable outlook for India. 

It also explained the weightage given to different economic parameters and enquired about the status of India's labour reforms and the bad loan situation, the official added. Not satisfied with the rating rationale, the finance ministry has often questioned the methodology adopted by global rating agencies, saying they have overlooked some recent reforms. Earlier this month, Economic Affairs Secretary Shaktikanta Das had said the rating agencies are several steps behind from reality and are missing out on "something which only they can best explain". 

"Last October, when we went for the annual meeting of World Bank and IMF along with the finance minister, there also in our interaction with several investors, they were surprised how the rating agencies have not upgraded India," he had said.